Elderly Britons aged 70 and above are facing months of uncertainty, anxiously awaiting news about potential state pension arrears potentially worth thousands of pounds. The Department for Work and Pensions (DWP) is grappling with a backlog of cases stemming from errors in National Insurance (NI) records, leaving many pensioners in a state of limbo.
Several individuals have shared their frustrating experiences with This is Money. Pamela Cottingham, 77, received notification in May of an 18-year gap in her pension record. Despite numerous calls to the DWP, she received no information until This is Money intervened, resulting in a £14,000 back payment and a £22 weekly increase to her pension. Conversely, 91-year-old Eveline Palmer learned in January that her record was 10 years short, only to subsequently discover she would receive no arrears. Lorraine Rae, 75, and Pamela Ecclestone, 82, also encountered lengthy delays; after This is Moneyâs intervention, Ms Ecclestone received nearly £5,300 and a £25 weekly increase.
These discrepancies arise from omissions by Her Majesty's Revenue and Customs (HMRC) of years where women were entitled to Home Responsibilities Protection (HRP) â a provision acknowledging childcare responsibilities â from their NI records. While HMRC is responsible for amending these records, the DWP subsequently recalculates pension payments and awards arrears. However, the process is complex, and numerous factors, often unclear to pensioners, influence whether arrears are paid, leading to unpredictable outcomes.
This is Money has been contacted by numerous frustrated pensioners facing similar delays. One 78-year-old waited nearly a year for arrears exceeding £17,700. Further complicating matters, bereaved families are also receiving letters about potential errors in their deceased relatives' pension payments, facing similar protracted waits for assessment. The outcomes vary dramatically, ranging from substantial sums to nothing at all. Families express distress at receiving such letters unexpectedly, followed by a lack of communication and difficulty obtaining assistance from DWP staff.
This is Money sought clarification from the DWP regarding staffing levels, average wait times, and whether all those notified of potential errors will ultimately receive an outcome. However, no response was received. A government spokesperson stated: "Our priority is ensuring pensioners get the financial support they are entitled to, and we are taking action to correct historical errors with Home Responsibilities Protection claims as quickly as possible. We apologise for any delays and have issued arrears where owed.â
Steve Webb, a former Pensions Minister and This is Money's retirement columnist, highlights the lack of transparency in the process. He argues that the system needs to be viewed from the perspective of the citizen, not just the administrator, and that clearer explanations are needed. He also suggests improving access to applications for HRP, including providing paper forms as an alternative to online applications, particularly for older pensioners who may lack technological skills or support. Similarly, Baroness Ros Altmann, another former Pensions Minister, points to resource allocation issues within the DWP, suggesting that focus on initiatives like winter fuel payments and Pension Credit may have diverted resources from addressing these state pension backlogs.
Numerous case studies within the article highlight the personal impact of these delays, illustrating the significant distress and financial uncertainty endured by affected individuals and their families. The lack of responsiveness from the DWP further compounds their difficulties, leaving many feeling helpless and unheard. While interventions by This is Money have yielded positive outcomes in some instances, the overall picture points to a significant systemic issue requiring immediate attention to ensure fair and timely processing of state pension claims.
