7 Crucial Facts: Is Your State Pension Due A £5,500+ Boost From The DWP Review?
The Department for Work and Pensions (DWP) has been undertaking one of the largest correction exercises in its history, directly impacting the financial security of hundreds of thousands of retirees across the UK. As of
This ongoing process is not a general pension increase but a targeted correction to address historical administrative failures. The DWP has already paid out over £800 million in arrears, with some individuals receiving lump sums exceeding £100,000. Understanding the specific categories being reviewed, the average payment amounts, and the timeline for completion is vital to ensure you or a loved one receives the full, correct State Pension entitlement.
The DWP State Pension Underpayments: Key Figures and Categories
The State Pension underpayments issue, which began to be formally addressed in 2021, stems from systemic errors in how the DWP applied rules, particularly for women claiming the old "Category BL" pension based on their husband's National Insurance (NI) contributions. The DWP's LEAP review is the mechanism to correct these errors, with the aim of completing the main categories by the end of 2025.
1. The "400,000 People" Figure: Cases Under Review
The figure of 400,000 people refers to the DWP's initial estimate of the total number of cases "at risk" of underpayment that required a comprehensive review. While not all of these cases will result in an underpayment, the process is designed to proactively check the records of those most likely to have been affected. The actual number of people identified as underpaid is lower but still substantial, with over 130,000 cases identified and corrected as of March 2025.
The DWP's focus is on ensuring that certain groups, who were often reliant on their spouse's contributions or a specific uplift, have received the correct amount since their entitlement date. The complexity of the pre-2016 State Pension system is the root cause of these errors.
2. Average Arrears Payments: The £5,553 Lump Sum Boost
The financial boost for those identified as underpaid is substantial, often involving a large lump-sum payment to cover years of missed income. The average arrears payment varies significantly depending on the category of the pensioner and the length of the underpayment period.
- Married Women (Category BL): The average arrears payment for this group, who were underpaid because they did not have their pension automatically uplifted to the 60% rate of their husband’s basic pension, stands at approximately £5,553.
- Over 80s (Category D): Pensioners in this group, who should have been automatically entitled to a non-contributory Category D State Pension but were not, have received an average arrears payment of around £2,202.
These figures only represent the average, with many individuals receiving much larger payouts, sometimes exceeding £100,000, particularly in cases where the pensioner was a widow or widower who missed out on an inherited pension.
3. The Three Primary Categories Receiving the Boost
The DWP has broken down the LEAP exercise into three main priority groups, all of whom reached State Pension age before April 6, 2016 (under the old system).
Group A: Married Women (Category BL)
These are women whose husband reached State Pension age before 17 March 2008. They should have had their State Pension automatically reviewed and uplifted to a minimum of 60% of their husband's basic State Pension once he retired. The failure to apply this uplift automatically is the most common error.
Group B: Widows and Widowers
This group includes people whose State Pension did not increase after their spouse died, or those who were receiving a reduced amount before their spouse's death. They should have been able to inherit a portion of their late spouse's NI contributions, potentially leading to a full basic State Pension or more. The DWP is also reviewing the cases of the heirs of women who were underpaid.
Group C: Over 80s (Category D)
This applies to pensioners who were receiving a low or nil State Pension at age 80. Regardless of their NI contribution history, all individuals over the age of 80 should be receiving a minimum, non-contributory Category D State Pension, a benefit that was often not automatically applied.
How to Check Your Entitlement and the Timeline for Payments
While the DWP is proactively reviewing the 400,000 at-risk cases, there are steps individuals can take to check their own status and ensure they are included in the correction exercise. Given the complexity, seeking expert advice can often speed up the process.
4. The LEAP Review Completion Date: End of 2025
The DWP has repeatedly stated that its goal is to complete the main LEAP correction exercise for the three major categories (Married, Widowed, and Over 80s) by the end of 2025. However, the process is extremely complex and labour-intensive, involving manual checks of old paper records. Regular management information updates are published by the DWP and HMRC to track progress.
It is important to note that a separate, but related, correction exercise for errors involving Home Responsibilities Protection (HRP) is also underway. HRP was a scheme that protected the State Pension rights of parents and carers, and errors in transferring these records mean thousands may have missed out on NI credits. This HRP correction exercise is expected to take longer than the main LEAP review.
5. The Home Responsibilities Protection (HRP) Correction
The HRP issue is a major new development in the underpayments crisis. This scheme, which ran from 1978 to 2010, provided National Insurance credits to those who stayed home to raise a child or care for a sick or disabled person.
- Who is Affected: Primarily women who claimed Child Benefit and should have received NI credits for those years but had the records incorrectly recorded or transferred.
- The Impact: Missing HRP credits can reduce a person's State Pension by thousands of pounds over the course of their retirement.
- The Review: The DWP and HMRC are now conducting a joint exercise to identify and correct these NI records, which will subsequently lead to a State Pension uplift and arrears for those affected.
6. What to Do: Contacting the DWP for a Review
If you or a family member fall into one of the priority categories and have not yet been contacted by the DWP, you should consider initiating a check. While the DWP is reviewing cases proactively, contacting them can sometimes ensure your case is prioritised, especially if you believe an error has occurred.
How to Request a Check:
- Married Women: If your husband reached State Pension age before 6 April 2016 and you are receiving less than 60% of his basic State Pension, you should contact the DWP.
- Widows/Widowers: If your State Pension did not increase following your spouse's death, or if you believe they were underpaid, contact the DWP's State Pension section.
- Over 80s: If you are over 80 and receiving a low or nil State Pension, you should contact the DWP to ensure you are receiving the Category D minimum.
The DWP prefers to be contacted by phone, as the State Pension system is complex and often requires a detailed conversation about specific dates and circumstances. You should be prepared with your National Insurance number and details of your spouse's pension if applicable.
7. The Broader Context: Campaign for Unfrozen Pensions
While the DWP review is about correcting underpayments in the UK, another group of over 400,000 British pensioners are campaigning for a different kind of boost: the unfreezing of their State Pension.
- The Issue: British retirees living in certain countries (like Canada, Australia, and New Zealand) have their State Pension "frozen" at the rate it was when they first moved abroad, or when they first retired. It does not increase annually with the triple lock, unlike pensions paid to retirees in the UK or other countries (like the US and EU).
- The Campaign: Campaigners are calling for the UK Government to end this policy, arguing it is discriminatory and causes severe financial hardship. Unfreezing these pensions would provide a significant, permanent boost to this group of 400,000+ people.
The State Pension boost for 400,000 people is a story with two facets: the confirmed, ongoing correction of historical DWP errors leading to massive arrears payments, and the powerful, ongoing campaign for overseas pensioners to receive annual increases. Both are critical issues for retirees today.
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