Seven key groups who may have been underpaid state pension

Thousands of people, mainly women, are thought to have been underpaid their state pension. The issue relates mostly to the older pension scheme, known as the basic state pension.As part of this pension, women were able to claim a state pension based on the National Insurance record of their husband, ex-husband, or deceased husband.While the vast majority of these cases saw payment issued without error, there were some issues subsequently identified which saw thousands underpaid.As the Government seeks to address the matter, experts have looked into the issue further.Jenny Holt, managing director for customer savings and investments at Standard Life, said: ‘Last year, the National Audit Office estimated that as many as 134,000 pensioners, mostly women, may not have received the full amount of state pension they’re entitled to, being owed an average of £8,900. This amounts to total underpayments of over £1billion.’Estimates this year are even higher, with around 700,000 potential cases needing to be reviewed by the Government and potentially as many as 237,000 people affected – meaning almost two percent of everyone receiving a state pension could be eligible for a top-up payment.READ MORE: Readers argue state pension is not enough for retirement State pension: Over 230,000 people may have been underpaid – seven key groups (Image: Getty)’These cases arise due to a variety of factors, including computer errors, information being incorrectly inputted in people’s records and the complexity of the state pension system and its design, which originated not long after the Second World War. ‘The people most likely to have been affected by these underpayments are those who reached state pension age before April 2016, particularly if they didn’t have a full National Insurance record or full state pension entitlement. ‘If you fall into this category then there are steps you can take to find out how much you might be owed and make a claim.’Many people, however, will not be affected by state pension underpayments. Most Britons are receiving the correct amount and so will not need to take any action.However, Ms Holt urges all older people to take the time to fully understand their state pension.DON’T MISSReaders argue state pension is not enough for retirement [POLL RESULTS]State pension payment date changes will take place next month [UPDATE]’Good news’ for pensioners as Bank of England hikes interest rates [LATEST] State Pension UK: What is State Pension? (Image: EXPRESS)Widowed people whose state pension did not rise when their spouse passed away could be eligible for back payments.Once again, these people should be notified but may wish to check as they could get a state pension increase, and potentially some of their spouse’s additional state pension.The sixth group are those who currently receive the correct pension but may have been underpaid while their spouse was still alive.Some widows whose spouses reached state pension age after March 17, 2008 are in this position.Finally, a group who could benefit are the families of people whose state pension was underpaid during their lifetime.In instances where this occurred, the DWP is writing to the next of kin and executors to explain how this will be put right.Standard Life states some will be notified automatically, but potential cracks in the system could mean people have to take matters into their own hands.A DWP spokesperson previously told Express.co.uk: ‘The action we are taking now will correct historical underpayments made by successive Governments. We are fully committed to addressing these errors, not identified under previous Governments, as quickly as possible.’We have set up a dedicated team and devoted significant resources towards completing this – alongside publishing GOV.UK guidance for next of kin – with further resources being allocated throughout 2022 and 2023 towards the underpayments exercise.”