7 Shocking Facts About The State Pension Boost For 400,000 People: Are You Owed A Back Payment?
The Department for Work and Pensions (DWP) is currently engaged in one of the largest State Pension correction exercises in UK history, an effort that is delivering a significant financial boost to hundreds of thousands of pensioners. As of late 2025, this massive undertaking is rectifying historical underpayments that have left certain groups, predominantly women, receiving thousands of pounds less than they were entitled to for years. The sheer scale of the error affects an estimated 400,000 people in total, with over £800 million already repaid to those impacted by the systemic failure.
This widespread issue stems from complex rules surrounding the Old State Pension system, particularly how the entitlements of married women, widows, and those over 80 were calculated and automatically uprated. The DWP continues to review cases at pace, but many pensioners may still be unaware they are owed a substantial back payment, potentially stretching back decades.
The State Pension Underpayment Scandal: Who is Affected?
The core of the underpayment issue lies in the failure to correctly increase the State Pension for certain cohorts of pensioners, many of whom reached State Pension Age before the New State Pension was introduced in 2016.
The DWP has identified specific groups that are most likely to have been underpaid, and the correction exercise is focused on these categories.
- Married Women (Category BL): This is the largest group. Women whose husbands reached State Pension Age before March 17, 2008, were entitled to have their pension automatically increased to 60% of their husband's basic State Pension rate. This uplift was often not applied.
- Widows and Widowers: People whose State Pension did not increase when their spouse died, based on their late spouse’s National Insurance contributions. This includes the heirs of married women who have since died but were underpaid.
- The Over 80s (Category D): Pensioners who were receiving a low or no State Pension at age 80 should have had their payments automatically uplifted to a minimum non-contributory rate, regardless of their National Insurance record. This uplift was missed for many.
- Divorced Women: Those who could have used their ex-husband's National Insurance record to increase their own State Pension entitlement.
- Married Women who claimed under the 'Married Woman's Stamp' (Category B): A specific historical claim that should have triggered an uplift when their husband retired.
- Pensioners with Home Responsibilities Protection (HRP): A separate but related DWP correction exercise, updated in May 2025, is addressing errors where HRP—a scheme to protect the State Pension rights of people who took time out of work to care for children—was not correctly recorded on National Insurance records.
The total number of confirmed underpayments is constantly rising as the DWP reviews cases, with over 230,000 women (and some men) identified so far, demonstrating the immense scale of the financial error.
Understanding the Error: Category BL and the 60% Rule
The primary mechanism behind the largest underpayments relates to the Category BL uplift. Under the Old State Pension rules, a married woman could claim a State Pension based on her own National Insurance contributions (NICs) or, if her own entitlement was low, she could claim a married woman's rate.
For women whose husbands retired before 2008, the DWP should have automatically reviewed the woman's pension when her husband turned 65 (the old State Pension Age) and increased it to a minimum of 60% of his basic State Pension.
Crucially, this uplift was not automatic for those whose husband retired *after* March 17, 2008. For this later group, the woman had to make an active claim to receive the higher rate. The historical error occurred because the DWP failed to apply the automatic uplift for the pre-2008 group and, in some cases, failed to inform the post-2008 group that they needed to make a claim.
The average back payment due to these errors can be substantial, often amounting to thousands of pounds, with some cases resulting in payments exceeding £100,000.
How to Check Your Eligibility and Claim Your Back Payment
While the DWP is proactively reviewing cases and issuing payments, the process is complex and not all affected groups are being contacted automatically.
The DWP's correction exercise is divided into several tranches, with the first focusing on Category BL married women who have already been identified. However, if you fall into one of the key groups, especially if you are a widow or over 80, it is strongly recommended that you contact the DWP to have your case reviewed.
Key Steps to Take for a State Pension Review:
1. Determine Your Eligibility Group: The most critical factor is whether you reached State Pension Age before April 6, 2016 (the introduction of the New State Pension). The underpayments primarily affect those on the Old State Pension system.
2. Check Your Husband's Retirement Date: If your husband reached State Pension Age before March 17, 2008, and you are currently receiving a State Pension that is less than 60% of his basic rate, you are likely due a significant back payment.
3. Contact the DWP: The official body responsible for the reviews is the DWP. You should contact the Pension Service to ask for a full review of your State Pension entitlement. It is important to specifically mention that you are asking to check for a potential underpayment under the Category BL or Over 80s rules.
4. Be Aware of the HRP Correction: If you are a woman who took time out of work to raise children and received Child Benefit, you should also ensure your Home Responsibilities Protection (HRP) credits are correctly recorded, as this is a separate DWP review that can lead to a further boost.
5. Backdated Payments: For those who are found to have been underpaid, the DWP will issue a lump sum payment. In some cases, the backdated payment can go all the way back to the date your husband turned 65, or to the start of the underpayment error.
The Future of State Pension Entitlements
The current DWP correction exercise is a stark reminder of the complexities of the UK's historical pension system. While this "boost" is a correction of a past error, the government is also making other changes that will affect future retirees.
For example, the State Pension Age is set to increase from 67 to 68 between 2026 and 2028, and a further increase to 68 is planned for later decades.
Furthermore, campaigners continue to call for a separate boost for over 400,000 British retirees living overseas whose pensions are currently frozen and not uprated annually, highlighting that the fight for fair pension entitlements remains ongoing.
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