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05.04.2024 - 13:37 / dailyrecord.co.uk
The Department for Work and Pensions (DWP) has published a new update on progress of the State Pension Underpayments Legal Entitlements and Administrative Practice (LEAP) exercise. The new figures published last month show that 97,016 people over State Pension age - mostly women - have received back payments averaging £2,192, £5,713 and £12,486, depending on their pension category.
The new data shows that 705,688 State Pension cases have been checked for possible errors between January 11, 2021 and February 29, 2024, with a total of £571.6 million owed in underpayments.
This LEAP exercise update provides crucial information for four groups of older people - married women (category BL), people in a civil partnership, widows and those over 80 (category D). These case reviews were due to be completed before the end of 2023 and were reportedly “on track” to be corrected by the end of this year.
Commenting on the update, Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: "Progress is being made to rectify the large-scale issue of state pension underpayments, but it is very slow. Just over £571m has been returned so far but with estimates suggesting the scale of underpayments could be around £1.5bn there’s still a very long way to go.
"People have the expectation that the state pension they receive is correct but a series of errors in an already overly complicated system means that for many thousands of people this expectation has been incorrect. Some who queried the issue with DWP over the years were told there was no problem, and many have suffered real financial hardship as a result. These people have been let down and need resolution as soon as possible.”
In 2020, the DWP became aware of a number
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Scotland’s First Minister has urged Rishi Sunak and Sir Keir Starmer to be “on the right side of history” in delivering compensation for women impacted by changes to the State Pension age. Humza Yousaf has written to who he said are the “current and future” incumbents of Downing Street after he met with Women Against State Pension Inequality (WASPI) campaigners outside the Scottish Parliament on Thursday.
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There are two key dates women born in the 1950s impacted by changes to the State Pension age should add to their diary this week as MPs return to Parliament after the Easter recess. The second reading of the State Pension Age (Compensation) Bill, which was brought before the House in February by SNP MP Alan Brown, will have its second reading on Friday, April 19.
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Secretary of State for Work and Pensions Mel Stride MP has said he will return to the House of Commons “when there is something to say” about a decision on whether women born in the 1950s affected by changes to the State Pension age should receive compensation. His comments may confuse some people as the Parliamentary and Health Service Ombudsman’s report (PHSO) published on March 21 indicated that compensation should be made.
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An open letter to Commons Leader Penny Mordaunt MP, demanding a debate and vote in Parliament on compensation for Women Against State Pension Inequality (WASPI) campaign, has been signed by more than 156,000 people in just 10 days.
People on devolved benefits and payments administered and delivered by Social Security Scotland will see payment rates rise from Monday. It was announced in December the Scottish Government would uprate benefits by 6.7 per cent from April 1 for the next financial year - in line with Consumer Price Index inflation rate in September of last year.
More than 41,000 people have signed an online petition created by Angela Madden, chair of the Women Against State Pension Inequality (WASPI) campaign, urging the Leader of the House of Commons to “urgently” give MPs the opportunity to debate and vote on compensation for women affected by changes to their State Pension age.
A retirement expert has warned that the State Pension underpayment corrections exercise is making progress, but warns it is “slow” with “a very long way to go”. Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said that new data from the Department for Work and Pensions (DWP) shows that arrears payments have been made to nearly 100,000 women due to historical errors.
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