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Department for Work and Pensions

P-004995 · Statement · Decision date: 6 March 2026 · View Department for Work and Pensions scorecard
Pensions Complaint handling
Complaint (AI summary)
Miss N complained the DWP incorrectly advised her about her State Pension entitlement in 2010 and failed to respond to information requests.
Outcome (AI summary)
The ombudsman closed the case, unable to determine what information DWP shared in 2010, but acknowledging DWP had recognised and addressed complaint handling errors.

Full decision details

The Complaint

3. Miss N complains about the service she received from DWP. She complains it: • incorrectly told her she was entitled to a full State Pension in 2010 and that she could not improve her entitlement • failed to respond to requests for further information in September 2022 and May 2023.

4. Miss N says that because DWP incorrectly told her she was entitled to the full State Pension, she did not claim benefits which would have increased her starting amount of State Pension. She also says that DWP’s actions have affected her mental health. Miss N wants the full State Pension.

Background

State Pension

5. Before we explain the background to Miss N’s complaint, it is important that we explain the changes made to the State Pension.

6. People who pay or are treated as having paid (including via credits or voluntary contributions) enough National Insurance Contributions (NICs) over the course of a tax year (between 6 April and 5 April) build up a ‘qualifying year’ of entitlement towards a State Pension.

7. Before April 2010, men needed 44 qualifying years and women needed 39 qualifying years to claim full ‘Basic State Pension’. There were additional contribution rules that applied before 2010. The number of qualifying years both men and woman needed reduced to 30 in April 2010.

8. The ‘new State Pension’ is a single-tier system that replaced the ‘Basic State Pension’ and the earnings-related ‘Additional State Pension’ from April 2016. It set the number of qualifying years of NICs for the full, new State Pension at 35.

9. Before the changes to the State Pension began in April 2016, people with private (personal or occupational) pensions could give up entitlement to the Additional State Pension in exchange for paying lower NICs or have some of their NICs redirected into their private pension. This was known as contracting-out.

10. The starting amount of new State Pension for people who have earned qualifying years before 6 April 2016, but who reach State Pension age on or after that date, is calculated according to ‘transitional arrangements’. DWP compares what a person would be entitled to under both the ‘old’ and ‘new’ system rules. Their starting amount of new State Pension is the higher of these two calculations.

11. When calculating a person’s starting amount of new State Pension, DWP makes a deduction to account for times when a person has contracted-out. So, people with enough qualifying years for a full new State Pension (35 years or more) may find they are entitled to a starting amount lower than the full rate.

12. The transitional arrangements also allow people to do things to add to their starting amount of new State Pension, if it is lower than the full rate, regardless of the number of qualifying years they have. This includes continuing to pay further qualifying years of NICs, making voluntary payments to ‘buy back’ gaps in their NICs record, and/or claiming certain benefits that add credits to their NICs record.

Miss N’s complaint

13. Miss N says when she was off sick from work in 2010, she contacted the Disability Living Allowance (DLA) Department. The DLA fall under DWP.

14. Miss N says the agent she spoke to on the phone asked her why she was not claiming sick pay. Miss N told them she was not claiming anything for herself but did claim Personal Independence Payment (PIP) for her disabled son.

15. Miss N says the agent told her she could have her stamp (NICs) paid for. But, after checking her records, the agent told Miss N she was entitled to full State Pension. This meant there was no need for DWP to pay Miss N’s stamp.

16. Miss N said she retired from the NHS with ill health that year. Miss N received her State Pension at the age of 66. After speaking with her friend, Miss N realised she was receiving less State Pension than she should be.

17. Miss N complained to DWP by phone and letter in September 2022. After getting no response, she contacted it again in May 2023. Again, DWP did not reply.

18. Miss N’s MP contacted DWP for her on 28 July 2023. DWP replied to Miss N and her MP on 16 August 2023.

Findings

State Pension Entitlement

21. Miss N complains DWP incorrectly told her she was entitled to full State Pension in 2010, which meant she missed an opportunity to claim a benefit to top up her NICs before she reached State Pension age. Miss N says that once she reached State Pension age, she did not get the full State Pension.

22. DWP’s ‘Customer Charter’ 2009 (in place at the time of the events Miss N complains about) says, ‘We will give you the right information, making it clear what you can expect from us and what your responsibilities are in return’.

23. DWP told us it does not have a copy of the phone call from 2010 because it was deleted due to its data retention policy. DWP also explained it changed its intranet platform (where all instructions and guidance content is held) around 2017 and older versions of content were not kept. This means DWP was unable to confirm what information would have been available to the agent Miss N spoke to at the time.

24. We compare what should have happened with what did happen and if any gap between the two is serious enough to suggest a failing.

25. Where there is conflicting evidence or uncertainty about what did happen, we look at whether something is more likely or not to have happened.

26. With the available evidence, we cannot say if DWP incorrectly told Miss N she was entitled to a full State Pension. This is because there is a possibility that DWP correctly advised Miss N in 2010, depending on the time she called and the policy in place at the time.

27. As we have explained in paragraph seven, women needed 39 qualifying years for the full, Basic State Pension before April 2010, and 30 qualifying years after April 2010. If Miss N contacted DWP in the time between January and April 2010 and had not made enough NICs to earn her 39th qualifying year at that stage, she may have been given wrong advice. If Miss N contacted DWP between April 2010 and December 2010, she may have been given the right advice.

28. We have looked at this carefully and because neither Miss N or DWP can confirm when the conversation was or provide any more evidence, we cannot say whether DWP incorrectly advised Miss N. This means we cannot reach a decision on whether DWP did or did not act in line with its Customer Charter. We appreciate this must be frustrating for Miss N.

29. It may help Miss N to know there is nothing in the evidence to suggest she missed an opportunity in 2010 to claim benefits that would add credits to her account. This is because her NICs record shows she was already having credits added to her account during the 2009/10 and 2010/11 tax years. In fact, Miss N had earned 43 qualifying years by April 2016, which is more than she needed before that date for the full Basic State Pension.

30. But, the new State Pension replaced the Basic and Additional State Pensions from April 2016. We think Miss N is entitled to a lower starting amount of State Pension than she expected because she did not understand how the new State Pension affected her personally, rather than because DWP gave wrong advice about her entitlement.

31. As explained in paragraphs eight to 12, people paying NICs for the first time from April 2016 needed 35 qualifying years for the full, new State Pension. For those who have earned qualifying years before April 2016, DWP calculates their entitlement under the ‘old’ and ‘new’ system rules. The starting amount of new State Pension they are entitled to is the higher of those two amounts.

32. When calculating a person’s starting amount, DWP makes a deduction to account for times when that person contracted-out of the Additional State Pension. So, even though Miss N has more than 35 qualifying years, she is not entitled to the full amount of New State Pension because she has contracted-out in the past.

33. There are things Miss N could potentially have done from April 2016 to improve her starting amount of new State Pension, had she known it was lower than she expected.

Our investigation into DWP’s communication about State Pension reform

34. In March 2024, we published an investigation into complaints that the DWP had failed to provide accurate, adequate and timely information about areas of State Pension reform.

35. Including other things, we found that research showed too many people did not understand their own situations or how the new State Pension affected them personally. The gap between awareness and understanding was highlighted by the Work and Pensions Committee and the National Audit Office. We found DWP failed to use this research and feedback to improve its service and performance.

36. We did not find that the complainants in our investigation suffered an injustice because of failings in DWP’s communication. But, we said it was possible others had lost opportunities to add qualifying years to their NICs record to improve their starting amount.

37. We asked Parliament to intervene and find an appropriate way to put things right for those affected. We shared with Parliament what we thought that may look – accepting its mistake, an apology, service improvements and a financial payment for anyone who can show they lost opportunities to add to their NICs record. The full findings of our investigation are available here.

The Government’s responses to our investigation

38. The Government published responses to our investigation in December 2024 and January 2026. It did not accept our findings and recommendations in relation to communication about the new State Pension. The Government’s responses are available here (December 2024) and here (January 2026).

Conclusion

39. We understand that Miss N may not have known that she was affected by the changes brought about by the introduction of the new State Pension until now. We also understand that knowing about those changes now may lead to new complaints that she has not made to DWP yet.

40. If Miss N decides to make a new complaint to DWP and if she asks us to look at it once DWP has replied, we may not be able to investigate any part of it that is linked to our investigation into the communication of new State Pension reform. This is because we have already investigated it and reached a decision.

Complaint handling

41. Miss N complains about DWP’s complaint handing. She says DWP failed to reply to many complaints she made so she had to take it up with her MP to get a response.

42. As we have said, we can see Miss N first made her complaint with DWP by phone and letter in September 2022. When Miss N did not get a reply, she contacted DWP again in May 2023 but did not get a reply. Miss N’s MP contacted DWP in July 2023. DWP replied to Miss N’s complaint in August 2023.

43. DWP accepted it did not reply to Miss N’s complaints and paid her £50. DWP explained this was in recognition of a mistake and expression of apology.

44. DWP’s ‘Customer Charter’ (2013) says it will deal with requests the first time it is contacted, tell complainants what will happen next and keep them updated. Miss N contacted DWP three times to make her complaint but did not get a response.

45. This suggests something has gone wrong because DWP did not deal with Miss N’s request first time. It also did not update her about what would happen next and when she could expect to get a reply. We next looked at how this error affected Miss N and what DWP has done to put it right.

46. Miss N told us how DWP’s actions affected her mental health. During our investigation, Miss N explained she was frustrated and stressed because of DWP’s lack of response and she felt she had no other option but to get her MP involved.

47. We understand it would have been frustrating for Miss N to keep contacting DWP and to have to wait 11 months for a reply.

48. Our Principles for Remedy say, ‘Where maladministration or poor service has led to injustice or hardship, public bodies should try to offer a remedy that returns the complainant to the position they would have been in otherwise. If that is not possible, the remedy should compensate them appropriately.’

49. DWP’s guidance on financial compensation says payments can be considered where the customer has suffered injustice or hardship because of poor service. While the guidance says payments usually range from £50 to £500, it does not explain how a figure is decided on.

50. We looked at our Guidance on Financial Remedy. We would put the impact of Miss N’s complaint at level two on our Severity of Injustice (SOI) scale. Level two complaints are where the complainant has experienced some distress, worry or annoyance but this does not affect their ability to live a normal life for a period of one to two weeks, to about six months. Cases of poor complaint handling are where there is a delay of more than a few weeks, up to one year.

51. We have put Miss N’s complaint in the lower end of level two because there were two small cases of poor complaint handling which led to her experiencing frustration, upset and not knowing why she was getting less State Pension than she was expecting. This went on for 11 months.

52. We think an apology and a financial payment between £120 and £550 is the right amount to put this right and be in line with level two on our SOI scale. DWP has apologised and already made a payment of £50. We do not think £50 is enough so we have asked DWP to make an extra payment of £100, to recognise how long Miss N was affected.

53. DWP has agreed to this. We think that with the payment it has already made, this will put this right for Miss N, and we are not recommending anything more.

Our Decision

1. We have carefully considered Miss N’s complaint about the Department for Work and Pensions (DWP). We are sorry to hear about the frustration and upset Miss N experienced during the complaints process, when she found out she was not entitled to a full State Pension.

2. We have looked at the available evidence and the relevant guidance that explains how DWP should carry out its work. We have decided to take no further action. This is because we cannot reach a decision on what information DWP shared with Miss N in 2010. We have also looked at DWP’s complaint handling and it recognised its errors and has taken steps to put these right.

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