Thirty-Third Report - Underpayments of the State Pension
Select Committee
Public Accounts Committee
HC 654
21 January 2022
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Thirty Third report from Session 2021-22 · published 28 Apr 2022
Recommendations & Conclusions
8 results
1
Conclusion
Acknowledged
On the basis of a report by the Comptroller and Auditor General, we took evidence...
Conclusion
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 Summary
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
When we asked the Department what positive assurance it obtained that the system was working...
Conclusion
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 Summary
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
The Department currently has just over 200 people conducting the LEAP exercise.
Conclusion
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 Summary
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.
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16
Conclusion
Acknowledged
The Department decided to contact pensioners reviewed as part of the State Pension LEAP exercise...
Conclusion
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 Summary
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.
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17
Conclusion
Acknowledged
When we asked if the Department is able to provide greater clarity to those who...
Conclusion
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 Summary
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.
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18
Conclusion
Acknowledged
Until recently, the Department did not keep records on pensioners for more than four years...
Conclusion
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 Summary
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.
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19
Conclusion
Acknowledged
The Department told us that it began exploring the potential for underpayments from April 2020,...
Conclusion
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 Summary
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.
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22
Conclusion
Acknowledged
Since our evidence session Sir Steve Webb has also drawn our attention to a potential...
Conclusion
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 Summary
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.
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