Underpayments of the State Pension
Public Accounts Committee
Closed
Inquiry
In early 2020 the Department for Work & Pensions (DWP) became aware of underpayments of State Pension affecting certain women who reached State Pension Age before 2016 . Subsequent DWP investigations uncovered systematic issues meaning that tens of thousands of people might have been underpaid State Pension for many years. …
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6
Recommendations
16
Conclusions
1
Report
1
Oral session
3
Letters
1
Event
Activity timeline 6 events
28 Apr
2022
2022
25 Apr
2022
2022
21 Jan
2022
2022
Report published
14 Dec
2021
2021
23 Nov
2021
2021
28 Oct
2021
2021
Oral evidence
Oral evidence sessions 1 session
28 Oct 2021
View on parliament.uk
Underpayments of the State Pension
Amanda Reynolds · Department for Work & Pensions
Cathy Payne · Department for Work & Pensions
Peter Schofield · Department for Work and Pensions
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Thirty-Third Report - Underpayments of the State Pension | HC 654 | 21 Jan 2022 | 22 | Responded |
Recommendations & Conclusions
8 results
1
Conclusion
Acknowledged
Thirty-Third Report - Underpayment…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Work & Pensions on the issue of underpayments in State Pension1
Government Response
The committee took evidence from the Department for Work & Pensions on the issue of underpayments in State Pension based on a report by the Comptroller and Auditor General.
HM Treasury
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11
Conclusion
Acknowledged
Thirty-Third Report - Underpayment…
When we asked the Department what positive assurance it obtained that the system was working...
When we asked the Department what positive assurance it obtained that the system was working and that it was paying people on time and the right amount, it set out the three quality assurance tiers and that said that its …
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Government Response
The committee concludes that the management information is still lacking in areas such as reporting on State Pension enquiries and complaints and the Department acknowledged that it ‘will not eliminate all official error anywhere across the Department’ despite the exercise it is going through’.
HM Treasury
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14
Conclusion
Acknowledged
Thirty-Third Report - Underpayment…
The Department currently has just over 200 people conducting the LEAP exercise.
The Department currently has just over 200 people conducting the LEAP exercise. The State Pension correction exercise requires specialist staff and training and is expected to cost the Department £23.4 million, with over 500 staff employed, by the time the …
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Government Response
The committee concludes that the Department redeployed its more experienced caseworkers from its Retirement Services division to the LEAP exercise and backfilled their posts from elsewhere in the Department or through new joiners, which placed additional strain on its normal State Pension operations.
HM Treasury
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16
Conclusion
Acknowledged
Thirty-Third Report - Underpayment…
The Department decided to contact pensioners reviewed as part of the State Pension LEAP exercise...
The Department decided to contact pensioners reviewed as part of the State Pension LEAP exercise only if a correction was made to their basic State Pension.36 Other groups of pensioners can receive arrears if they make a claim to the …
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Government Response
The committee concludes the Department has not given people who are worried they have been underpaid enough information to find out what they should do, with the risk that many may still miss out on money they should receive.
HM Treasury
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17
Conclusion
Acknowledged
Thirty-Third Report - Underpayment…
When we asked if the Department is able to provide greater clarity to those who...
When we asked if the Department is able to provide greater clarity to those who think they may have been affected, the Department said that it cannot publish guidance for those who may have been underpaid, such as an online …
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Government Response
The department welcomes the endorsement of action already taken but rejects the Committee’s conclusion and points to information on Gov.uk. It is working to identify those affected and will contact them and is working with registrar's offices to identify next of kin and will provide a more direct route for enquiries about deceased customers by Summer 2022.
HM Treasury
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18
Conclusion
Acknowledged
Thirty-Third Report - Underpayment…
Until recently, the Department did not keep records on pensioners for more than four years...
Until recently, the Department did not keep records on pensioners for more than four years after the date they died due to its data retention policy.40 However, it said it has now 32 C&AG’s Report, paras 18, 4.11 33 Qq …
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Government Response
The committee concludes the Department prioritizes living pensioners over the deceased, even when their next of kin may be vulnerable, and lacks a plan to trace the next of kin of the deceased.
HM Treasury
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19
Conclusion
Acknowledged
Thirty-Third Report - Underpayment…
The Department told us that it began exploring the potential for underpayments from April 2020,...
The Department told us that it began exploring the potential for underpayments from April 2020, following a number of complaints by individual pensioners and a campaign by the former pensions minister Sir Steve Webb and Tanya Jefferies of Thisismoney.co.uk from …
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Government Response
The Department began exploring the potential for underpayments from April 2020, following a number of complaints by individual pensioners and a campaign by the former pensions minister Sir Steve Webb and Tanya Jefferies of Thisismoney.co.uk from January 2020, who provided the Department with example cases of underpayment.
HM Treasury
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22
Conclusion
Acknowledged
Thirty-Third Report - Underpayment…
Since our evidence session Sir Steve Webb has also drawn our attention to a potential...
Since our evidence session Sir Steve Webb has also drawn our attention to a potential systemic error affecting divorced pensioners. The NAO report states that “the Department did not find any significant evidence that it had failed to properly process …
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Government Response
The committee concludes a potential systemic error affecting divorced pensioners. The Department did not find any significant evidence that it had failed to properly process cases where a pensioner had notified it of their divorce.
HM Treasury
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Correspondence 3 letters
25 Apr 2022
Joint correspondence from Rt Hon Stephen Timms, Chair, Work and Pensions Committee and Dame Meg Hillier, Chair, Public Accounts Committee, re State Pension Underpayments, dated 20 April 2022
Parliament page
14 Dec 2021
Correspondence from Sir Steve Webb, Partner, LCP, re State Pension Correction Exercise, dated 7 December 2021
Parliament page
23 Nov 2021
Correspondence from Peter Schofield CB, Permanent Secretary, Department for Work and Pensions, re inquiry into underpayments of State Pension, dated 15 November 2021
Parliament page