The Department for Work and Pensions (DWP) has confirmed that thousands of pensioners were underpaid their State Pension, with arrears averaging around £4,200 per person in affected cases.

The issue follows a long-running internal review into historic calculation errors, particularly involving married women, widows and over-80 pensioners under the old Basic State Pension system.

Payments are being corrected automatically, with arrears transferred directly to eligible individuals or, in some cases, their estates.

What Has the DWP Confirmed?

The government has acknowledged historic administrative errors in the calculation of certain State Pension awards.

Key points:

• Average arrears identified: around £4,200
• Some complex cases have exceeded £10,000
• Reviews focus mainly on pre-2016 Basic State Pension claims
• Payments are being made automatically

Importantly, this issue does not affect the New State Pension structure introduced in 2016 in the same way.

Why Did the Underpayments Happen?

The errors largely stemmed from:

• Manual record-keeping under legacy systems
• Failure to automatically uplift married women’s pensions
• Incorrect reassessment after bereavement
• Missed over-80 minimum pension entitlements

Under previous rules, certain pension increases required administrative action when circumstances changed. In some cases, this did not happen correctly.

The DWP began a formal review to identify affected claimants and correct payments.

Who Is Most Likely to Be Affected?

The review has primarily focused on the following groups:

• Married women entitled to 60% of their husband’s Basic State Pension
• Widows whose pensions were not properly reassessed
• Over-80 pensioners entitled to the minimum pension rate
• Some divorced women whose ex-spouse contributions were not fully applied

Each case is assessed individually. Not everyone in these categories will necessarily have been underpaid.

How Much Could Pensioners Receive?

The commonly cited £4,200 figure is an average.

Actual payments depend on:

• The size of the original underpayment
• How long the error persisted
• The pensioner’s entitlement category

Some arrears payments have been significantly higher, particularly where errors continued for many years.

Payments typically include:

• Backdated pension owed
• Adjusted ongoing weekly payments

They do not usually include additional compensation beyond unpaid sums.

How Will Payments Be Made?

The DWP has confirmed:

• Reviews are largely automatic
• Most pensioners do not need to apply
• Arrears are paid into the same bank account as the State Pension

If the pensioner has died:

• The DWP may contact the estate
• Next of kin may be eligible to claim arrears

Letters are sent directly to those affected.

What Should Pensioners Do?

Although the review is ongoing, pensioners who believe they may fall into one of the affected categories can:

• Review old State Pension award letters
• Check whether pension increases were applied after marriage or bereavement
• Contact the Pension Service if unsure

It is advisable to have:

• National Insurance number
• Marriage or divorce details
• Spouse’s contribution history (if relevant)

Does This Affect the New State Pension?

The majority of identified errors relate to the Basic State Pension system (pre-April 2016).

Those receiving the New State Pension are less likely to be affected, although individual circumstances vary.

Wider Impact on Pensioners

For many retirees living on fixed incomes, a lump sum of £4,200 can make a meaningful difference.

It may help cover:

• Energy arrears
• Home maintenance
• Debt repayment
• Essential household costs

For families supporting elderly relatives, awareness is important — some pensioners may not realise they are entitled to arrears.

What This Means for the Pension System

The review has highlighted weaknesses in historic administration systems.

However, it also demonstrates:

• Government oversight
• Corrective accountability
• Improved digital record-keeping in the modern system

The DWP has stated that processes are now more automated to reduce the risk of similar errors in future.

FAQs

Who qualifies for the £4,200 underpayment?

Mainly married women, widows, over-80 pensioners and some divorced women under the Basic State Pension system.

Do I need to apply?

Most cases are being reviewed automatically by the DWP.

How will I know if I am affected?

You will receive a letter from the Pension Service if arrears are due.

Can families claim on behalf of someone who has died?

Yes, estates may be entitled to arrears payments.

Does this affect the New State Pension?

The issue mainly relates to the pre-2016 Basic State Pension system.