Bereaved families who fear they will never know if their late mothers were underpaid potentially vast sums in state pension may have a glimmer of hope after an MP pressed the Government for answers.
Those who manage to unearth old letters from the Department for Work and Pensions and bank statements which say how much they were paid could persuade the Government to reopen cases – we explain how to turn detective below.
The DWP, which admitted 2,500 families were affected by the deletion of pre-2021 data, told Liberal Democrat Work and Pensions spokesman Steve Darling it could review state pension awards if such records are supplied.
Darling also pushed HMRC to disclose whether it held useful information about deceased people’s state pensions, but it has since emerged that it does not.
‘It’s deeply troubling that families are being told the DWP can’t check because records have supposedly been deleted,’ says Darling.
‘Bereaved families deserve transparency and a fair chance to ensure their relatives received what they were entitled to.’
Families have received letters from the DWP admitting it has given up on their late mothers’ cases
But Darling adds that it is ‘a step forward’ that the DWP says it will now consider applications based on people’s own paperwork.
Relatives who waited years to find out if their late mothers lost out on state pension are outraged after learning from DWP letters it has abandoned further investigation of their cases, as we revealed last week.
Many elderly women died while unwittingly being underpaid untold sums in a state pension scandal uncovered by former Pensions Minister Steve Webb and This is Money.
Payouts ranged from a few hundreds or thousands of pounds to more than £100,000 in some cases. But many might now never know if their mothers were denied the correct sums – and if so how much – while still alive.
This is because until 16 January 2021 the Department for Work and Pensions used to destroy records several years after the death of a pensioner and their surviving spouse.
Deletions were paused after we discovered some state pension records – most especially those involving older married women and widows – were riddled with errors. This policy will stay in place until 31 December 2026.
Bereaved relatives have expressed bewilderment and anger to us after receiving letters from the DWP about their late parents’ pensions.
Many logged details several years ago on a website the Government set up for next of kin following pressure from campaigners and MPs.
They question why they were not told before now that state pension records were deleted, so they might have retained other paperwork or tried to find it sooner.
Comments include that it is ‘a disgrace’, a ‘total sham’, that the process ‘left a very sour taste’, and that they will never know now if their mum was paid correctly.
Some feel that for the sake of a parent who struggled to get by they should investigate further, and have asked if there is still anything they can do – see below.
Steve Webb, who is This is Money’s retirement columnist and a partner at pension consultant LCP, says: ‘It is immensely frustrating for people who registered details of a loved one to be kept waiting years for a response, only to be told that records have been deleted.
‘In some cases, had people been told at once that no official records were kept they might have been able to obtain bank records, but some of those will now also have been deleted.
‘DWP should communicate clearly to people that they will still consider evidence of underpayments and it should use all records at its disposal, including those held by HMRC, to investigate any reasonable request to check for an underpayment.’
A DWP spokesperson says: ‘We always encourage next of kin and representatives of deceased customers to contact us if they have relevant proof such as historic letters from the department so we may be able to review the customer’s state pension award.
‘We continue to work through outstanding cases and as of as of September 2024 we have reviewed 857,050 cases.’
What did the DWP reply to Steve Darling MP?
The DWP said in answer to Steve Darling’s parliamentary question:
The next of kin/representatives of a deceased state pension customer had the opportunity to contact DWP if they thought the customer may be in scope for the state pension underpayments exercise.
In reviewing these enquiries, the Department has identified that for a small number, approximately 2,500 customers, our Pension Service Computer System (PSCS) no longer holds a record for the deceased customer. This is in line with our Data Retention Policy.
A pause on the deletion of customer records was implemented at the start of the state pension underpayments exercise and remains in place. However, records for customers who died before 16/01/21 will have been deleted in line with our Data Retention Policy.
DWP may be able to review a deceased customer’s state pension award, if the next of kin/representative could supply historical records, such as letters received by the deceased customer from DWP and supporting bank statements.
How to find records to get DWP to reopen a case
Bereaved relatives will have to turn detective to find old DWP letters and bank statements. If you don’t hold them, perhaps someone else in your family has kept them somewhere.
If you are next of kin or an executor of your parent’s estate and their death was recent enough, you might be able to request statements from their bank, building society, or Post Office Card Account – see below.
Steve Webb says: ‘If you are tracking down old bank statements for a late relative, it would be most useful to narrow it down to the months just before and after their spouse reached state pension age, or just before and after their spouse died.’
ANY of the following figures would do, so you can compare with the prevailing state pension rates to see if there might be an underpayment.
– Amount mother received in pension before husband retired (if applicable)
– Amount mother received in pension after husband retired
– Amount mother received in pension after husband died
– Whether amount of pension changed when mother turned 80 (if applicable)
We round up what you need to do if they used one of the bigger institutions below. The state pension payment might be listed on the statement with the NI number as reference.
HSBC
Number of years back you can request statements: Seven
What info is required: Ideally sort code, account number and account holder’s name, but if not personal details and/or a reference from correspondence from the bereavement support team. Also, proof you are either the executor, personal representative or verified adult, and possibly the death certificate and/or will.
Contact details: Bereavement team
Barclays
Number of years back you can request statements: Six
What info is required: To notify the bank of a bereavement, you need to provide contact details, relationship to the deceased and proof of identity, plus the name, address, and death certificate of the deceased customer. If you don’t know the account number and sort code, the bereavement team will try to locate the account based on the information provided.
Contact details: After notification of bereavement has been registered, bereavement team on 0800 068 2238 (option 2)
Nationwide
Number of years back you can request statements: Seven
What info is required: Name, address and date of birth, but a sort code and account number are very helpful.
Contact details: Write directly to the bereavement team and include a copy of the death certificate and probate where available.
NatWest
Number of years back you can request statements: Seven
What info is required: Account number and sort code but a search can be done on name, date of birth and address.
Contact details: Phone up, use digital assistant Cora or ask in a branch.
Lloyds
Number of years back you can request statements: 10
What info is required: Authorised executors or legal representatives of a deceased customer’s estate can request bank statements.
Contact details: Bereavement team on 0800 015 0012
Post Office Card Account
(JP Morgan is managing the wind-down of the accounts which are no longer operational)
Number of years back you can request statements: If the account still has a balance, all old statements would be made available, and you could see money paid in and out. If the account has a zero balance and/or the account was closed, statements are only provided if the account was closed in the last six years.
What info is required: Supporting information to confirm you as executor of the estate, then security processes to validate the identity of both direct account owners and executors.
Contact details: Post Office has information here. JP Morgan info is here.
If you think you might have sufficient information to press the DWP to reopen the case, or are in a position to get it from a bank, Steve Webb and This is Money are willing to help if we can.
Please email us the following information at [email protected]:
Dates of birth and death for both your mother and father
Which bank your mother used, or if she had a Post Office Card Account
Your phone number
Permission to share the above information with Steve Webb of LCP
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