HUNDREDS of thousands of Brits may have been underpaid by the Department of Work and Pensions.
But, pensioners can easily check their eligibility for compensation using a straightforward online tool.
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The DWP has has acknowledged the staggering scale of the error and has already reimbursed over £800million.
A review by the department revealed that more than 130,000 people were underpaid on their state pensions due to a series of administrative blunders, with some errors stretching back as far as 1985.
While the average amount owed per person was just over £6,000, some individuals received life-changing sums.
One widow, after years of pursuing the department, was awarded £23,000.
To date, £804.7million has already been reimbursed, and the total bill is expected to exceed £1billion as additional cases come to light.
Former Pensions Minister Steve Webb warned that the situation was so severe it risked becoming normalised.
He said: “The vast majority of those who lost out were women, some underpaid for decades or who died never having received what they were owed.”
The hardest-hit groups include married women whose pensions were not automatically increased when their husbands retired.
Widows and widowers were also affected, as their payments were not adjusted following the death of their spouse, while over-80s missed out on pension uplifts when they reached their milestone birthday.
To assist pensioners in determining whether they have been underpaid, financial consultancy LCP has created a free online tool.
This tool enables individuals to quickly check if they are missing out on payments they are entitled to.
The calculator, which has already been used over a million times, takes just a few minutes to complete.
It requires users to provide basic information, such as their marital status and current pension income.
The DWP has reviewed the majority of pension records, but some cases remain unresolved due to missing documentation or individuals not yet coming forward.
The department has stated that the full resolution of these errors will not be completed until March 2027.
In the meantime, pensioners are strongly encouraged to check their status and reach out to the Pension Service if they suspect they have been underpaid.
Calculate your state pension payments
To qualify for the new state pension, you need to have paid enough National Insurance (NI) contributions or credits.
You need at least ten years on your record to get any payments at all. To get the full amount, you usually need 35 years’ worth of contributions.
If you have gaps on your record, you can choose to buy the missing years to boost your state pension payments.
To find out whether you’re on track to get the full state pension, you can check your forecast on the government website.
You’ll need to sign in through the government gateway.
If you’ve already got an account, use those details, otherwise you might need to set one up.
Those just reaching the retirement age now can only qualify for the new state pension, which follows the rules outlined above
But if you are either a man who was born before 6 April 1951 or a woman who was born before 6 April 1953, you’ll get something called the basic state pension, and you might also get additional state pension.
You can read more about the basic state pension on the government’s website.
With the cost of living still biting, receiving thousands of pounds in backdated pension could be a game-changer for many.
But for others, it’s too little, too late.
Rachel Vahey from AJ Bell said: “It is absolutely critical all those affected receive the money they are owed as quickly and efficiently as possible.”
Don’t let your retirement cash go unclaimed, it could be your turn for a slice of that £800million.
