Thousands of state pensioners will 'miss out' on cash after DWP error

Thousands of female pensioners are set "to miss out" on state pension cash after a Department for Work and Pensions ( DWP ) error. Former Liberal Democrats pensions minister Sir Steve Webb says HMRC's errors may lead to tens of thousands of older people missing out on state pension cash.

Law firm partner Webb said a HMRC campaign to track down more than 180,000 who have missed out on national insurance (NI) credits for time raising children is set to fail. The DWP says an estimated 187,000 pensioners have been underpaid in a NI mix-up.

HMRC has so far issued more than 250,000 letters to people over pension age with no Home Responsibilities Protection (HRP) on their record, encouraging them to put in a claim. Sir Steve, who is now partner at pension consultants LCP, has now spoken out.

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He said: “Whilst I understand the desire of Government departments to cut costs, it is completely inappropriate to write letters to hundreds of thousands of pensioners which suggest that the only way to apply is online. At the very least, the letters should give recipients a phone number to call or include a paper form for those who are not online.

“I am concerned in particular for older pensioners who may not have friends or family to help them.” He said those who have been underpaid have typically missed out on thousands of pounds, and “deserve to have this put right”.

He added: “Unless HMRC addresses this issue it is highly likely that tens of thousands of older pensioners may continue to miss out on money which is rightfully theirs.” Anyone who is affected could be owed an average of £5,000 each, with the DWP expecting to pay out more than £1billion in arrears.

The DWP estimates 43,000 of those affected are now deceased but their family will be able to make a claim for any money owed.