DWP Owes £500m in Back Pay – Check Eligibility, List, and Payment Dates

The Department for Work and Pensions (DWP) is currently dealing with a significant issue regarding back payments, with around £500 million owed to approximately 80,000 UK citizens. This underpayment primarily affects married women, widows, widowers, and individuals over 80. In this article, we’ll explain who qualifies for the back pay, how to check if you’re eligible, and what dates you should keep in mind for payment updates.

Backpay

The DWP owes £500 million in back pay, impacting thousands of people who did not receive the correct pension amount. The issue mainly concerns women, particularly married and divorced women, and elderly individuals who were entitled to higher pension rates but didn’t receive them due to a clerical error.

The problem began when rules around state pensions were updated in March 2008. Under these new rules, married women were entitled to 60% of their husbands’ state pension based on his National Insurance contributions once he turned 65. However, many women did not receive these increased payments, leading to a significant shortfall.

In total, about 82,323 individuals have been identified as potentially eligible for these back payments.

Check List

The DWP has confirmed that back payments are owed to several categories of citizens. To determine if you’re eligible, the following groups are affected:

1. Married women: Women who were entitled to a 60% basic state pension when their husbands retired but didn’t receive the correct amount.
2. Widows and widowers: Those who should have inherited an elevated pension after their spouse passed away.
3. People over 80: Individuals who turned 80 and were already receiving a state pension but did not receive the automatic upgrade to 60% of the basic state pension.

These citizens are advised to use an online calculator provided by the DWP to check if they were underpaid. The DWP is also working to contact affected individuals directly.

Eligibility

Eligibility for the DWP’s back payments depends on meeting specific criteria. The main groups likely to receive back pay include:

• Married women who were supposed to receive a 60% pension rate based on their husband’s contributions but didn’t receive the proper amount.
• Widows and widowers who were entitled to an increase in their pension after their partner’s death but did not receive the adjustment.
• People over 80 who were already receiving their state pension and should have automatically received a higher pension when they reached 80.

The DWP has made it clear that these underpayments were a mistake, and the department is actively working on correcting the issue. Those who believe they are eligible should check the DWP website regularly for updates on their case.

Dates

While official payment dates have yet to be finalized, the DWP has committed to reviewing all cases and providing progress reports by the end of March 2024. Additionally, a preliminary report is expected by the end of February 2024.

Initially, it was estimated that around 230,000 people were impacted by these underpayments, with potential amounts ranging between £2,245 and £12,383. However, the exact number of affected citizens may increase as the review continues.

To stay informed about when payments will be made, eligible individuals should regularly check the DWP’s official website and other government updates.

Calculating Back Pay

Wondering how to figure out if you’re owed back pay? The process is relatively simple:

1. Determine your pay periods: Figure out how often you were paid—whether monthly, weekly, etc.
2. Calculate owed amount: Divide your yearly pension amount by the number of pay periods. This will give you the amount owed per period.
3. Total back pay: Multiply this amount by the number of periods you were underpaid to calculate your total back payment.

For some individuals, particularly those on Personal Independence Payment (PIP), the back pay could range between £5,000 and £12,000. According to reports, around 326,000 PIP cases are still under review following changes in social support programs.

All We Know So Far

The DWP’s £500 million back payment issue has impacted a broad range of individuals, primarily women and the elderly. The underpayments were the result of administrative errors, but the DWP has committed to resolving the issue by 2024. Many affected individuals have already been contacted, and there are tools available to help others check their eligibility.

As progress continues, individuals should keep an eye on official government updates, as payment dates and amounts could change based on the review process. Regularly visiting the DWP’s website and using the available calculators are essential steps to ensure you don’t miss any potential payments.

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