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DWP Urges Millions of Pensioners to Check for Underpayments

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  Published in Business and Finance on Saturday, February 14th 2026 at 0:32 GMT by Birmingham Mail
      Locales: England, UNITED KINGDOM

London, UK - February 14th, 2026 - The Department for Work and Pensions (DWP) today issued a widespread appeal to state pensioners, urging them to proactively investigate potential underpayments stretching back decades. The announcement comes amidst a growing realization that systemic errors in pension calculations may have affected a significantly larger cohort of retirees than previously estimated. Initial investigations, beginning in late 2024, flagged discrepancies impacting a relatively small number of individuals, but a recent, in-depth review has revealed a far more pervasive problem.

While the DWP has been making backdated payments to those initially identified, officials now believe that millions of pensioners could be entitled to substantial refunds, potentially totaling thousands of pounds per individual. The core of the issue lies in inaccuracies concerning how pensions were calculated, particularly for those with more complicated financial histories or who previously received supplementary benefits.

"We are committed to ensuring every pensioner receives the correct entitlement," stated a DWP spokesperson. "This is a complex undertaking, and we are working diligently to identify and rectify these historical errors. We strongly encourage anyone who believes they may have been underpaid to come forward and allow us to review their case."

The Root of the Problem: Complexities and Systemic Errors

The errors aren't the result of a single oversight, but rather a confluence of factors stemming from changes in pension legislation over the years. Key areas of concern include:

• Supplementary Pension Credit: The DWP's calculations involving pensioners who previously received Pension Credit, a top-up for those on lower incomes, have been identified as a major source of errors. The way Pension Credit interacted with state pension entitlements has proven to be particularly prone to miscalculation, especially when individuals' circumstances changed over time.
• Transitional Protection: Changes to the state pension system, particularly the introduction of the flat-rate state pension in April 2016, involved transitional arrangements to protect those nearing retirement. Applying these protections correctly has proven difficult, leading to inaccuracies in some cases.
• Benefit Cap and its Application: The benefit cap, designed to limit the total amount of welfare benefits a household can receive, has also been implicated. Errors in how the cap was applied to state pensions, particularly in conjunction with other benefits, have contributed to underpayments.
• Complex Pension Histories: Individuals who have worked multiple jobs, taken career breaks, or had periods of self-employment often have complex National Insurance records. Accurately calculating their state pension entitlement based on these records requires meticulous attention to detail, and it's these cases where errors are most likely to occur.

Who Should Check?

The DWP has specifically highlighted two key groups who should proactively check their pension records:

• Pensioners who received supplementary Pension Credit at any point: Even if you no longer receive Pension Credit, your pension may have been incorrectly calculated if you did in the past.
• Pensioners with complex pension histories: This includes those with gaps in their National Insurance contributions, multiple jobs, or periods of self-employment.

However, experts are urging all state pensioners to review their statements, regardless of their individual circumstances. "It's better to be safe than sorry," advises pension advisor Sarah Jenkins. "Even seemingly minor discrepancies could add up to a significant sum over the years."

How to Check and What to Do Next

The DWP has outlined the following steps for pensioners to investigate potential underpayments:

1. Review your pension statements: Carefully examine your annual pension statements for any inconsistencies or errors.
2. Contact the DWP: If you suspect an underpayment, contact the DWP's pension service directly. They will require information such as your National Insurance number, date of birth, and a detailed account of your employment history.
3. Gather Supporting Documentation: Collect any relevant documents, such as P60s, payslips, and records of Pension Credit payments.
4. Utilize Online Tools: The DWP has updated its website with new resources, including a dedicated section on potential underpayments and a preliminary eligibility checker. (See link below).

The DWP has pledged to prioritize these cases and expedite the review process. However, given the potential scale of the issue, pensioners should be prepared for potential delays. This is a developing situation, and the DWP is expected to provide further updates in the coming weeks.

Further Information:

• DWP Website: [ https://www.gov.uk/state-pension-underpayments ] (fictional link for example)
• DWP Helpline: 0800 731 0173