‘Unexpected’ 13th DWP Payment: State Pension Underpayments DWP is not just a bureaucratic mix-up—it’s a large-scale correction effort that has already resulted in over £800 million being paid back to pensioners who were shortchanged. Many are calling it the biggest pension repayment effort in UK history. From the outside, it might sound like a surprise bonus or a 13th payment for retirees, but what’s really happening is deeper. It’s a long-overdue correction of administrative errors that affected some of the most vulnerable groups in society—mainly women, caregivers, and the elderly. This article walks you through what happened, who is affected, what action you can take, and why it matters for families, professionals, and the broader pension system. Let’s unpack it step-by-step.
‘Unexpected’ 13th DWP Payment
The State Pension Underpayments DWP effort is about correcting mistakes—not giving out extras. For married women, widows, over-80s, and carers—especially those who raised children before 2010—it’s a path to reclaim what’s rightfully theirs. Over £900 million has already been paid, and hundreds of thousands more people could still be eligible. Don’t wait for the government to come knocking. Be proactive. Check your record, ask questions, and take steps today.
| Key Area | Data & Details |
|---|---|
| Total Underpaid Cases (LEAP) | 130,948 |
| Total Arrears Repaid | £804.7 million |
| Average Arrears per Group | Married women: £5,553; Widows: £11,725; Over-80s: £2,203 |
| HRP Claims Paid | 12,379 cases; £104 million total |
| Average HRP Arrears | £8,377 per person |
| Letters Sent by HMRC | 370,000+ |
| Review Completion Deadline | March 2027 |
| Official Resource | Check your pension record at GOV.UK |
What Is the State Pension Underpayment Issue?
Back in 2021, the UK Department for Work and Pensions (DWP) launched a major correction program to fix historical underpayments in the state pension system. Two major errors were identified:
- LEAP (Legal Entitlements and Administrative Practice) cases – where certain pensioners, especially married women, widows, and those aged over 80, didn’t automatically receive the full pension amount they were legally entitled to.
- Home Responsibilities Protection (HRP) errors – where people (mostly women) who took time off work to raise children before 2010 failed to get the National Insurance (NI) credits they deserved because of missing data on Child Benefit forms.
These issues were not discovered overnight. They were systemic and, in some cases, persisted for decades before being publicly acknowledged and formally addressed.
How Did These Underpayments Happen?
The roots of the problem trace back to how pensions were processed manually for decades. The issue wasn’t always with the law—it was with how that law was carried out.
The LEAP Issue
The LEAP underpayments were caused by DWP failing to update pension entitlements when a person’s circumstances changed. These included:
- Married women who should have received 60% of their husband’s basic state pension when he reached retirement age.
- Widows who should have inherited additional state pension from their late spouse.
- Pensioners aged 80+ who were entitled to a non-contributory pension top-up (Category D) but were never awarded it.
In most of these cases, people didn’t know they were being underpaid. The system didn’t notify them, and unless they were pension experts themselves or had help, they never filed a claim.
The HRP Error
This error affected mostly mothers and caregivers who claimed Child Benefit before 2000. During that time, Child Benefit forms didn’t always require a National Insurance number, so HRP credits that should have been automatically added to the individual’s NI record weren’t recorded.
This missing data led to gaps in NI contributions, and since your state pension is calculated based on these credits, it meant thousands received reduced pensions for years.
Outreach and Communication: A Missed Opportunity?
Even after identifying the problem, the way DWP and HMRC communicated the issue created further hurdles:
- Many recipients received official letters but dismissed them as scams, especially older pensioners wary of identity fraud.
- Others didn’t act because they found the instructions unclear or the forms too complicated.
- Some who should have received letters never did, because of outdated addresses or lack of awareness in the system.
According to policy experts at Lane Clark & Peacock (LCP), fewer than 20% of eligible women have responded to the outreach letters. This means hundreds of thousands could still be owed money without knowing it.
Who Is Affected?
The groups most likely to be affected include:
- Women who paid a reduced “married woman’s stamp.”
- Widows who did not see an increase in their pension after their spouse passed away.
- People over the age of 80 who are on a low pension.
- Mothers or carers who claimed Child Benefit between 1978 and 2010 but didn’t have their NI number included.
- Divorced women who may have been entitled to a portion of their ex-spouse’s pension but never received it.
What You Can Do for ‘Unexpected’ 13th DWP Payment: Step-by-Step Guide
Step 1: Check Your State Pension Record
Start by visiting the Check State Pension tool on GOV.UK. You’ll need a Government Gateway account to log in. This tool lets you:
- View how much pension you’re getting.
- See your full National Insurance history.
- Identify any missing years or gaps in contributions.
Step 2: Review Your Child Benefit History
If you raised children before 2010 and claimed Child Benefit, especially before 2000, and didn’t include your NI number, your HRP credits may be missing.
Visit the National Insurance credits page for more guidance. If you suspect missing credits, you can fill out form CF411 to request a review.
Step 3: Contact the Pension Service
If you think your pension may have been underpaid for any reason, don’t wait for a letter. Call the Pension Service directly:
- UK residents: 0800 731 0469
- Overseas: +44 (0)191 218 7777
Explain your situation and request a formal review.
Step 4: Fill Out the CF411 Form (For HRP Cases)
If you believe you were impacted by HRP errors, download and complete the CF411 form from GOV.UK.
Attach:
- Proof of Child Benefit receipt (letters, payment records, etc.)
- Your NI number
- Dates of caregiving or parenting
Mail the form as instructed or submit it online if eligible.
Step 5: Monitor for Response and Payment
If your claim is approved:
- You’ll receive a lump-sum back payment for missed pension (tax-free).
- Your future pension payments will be increased accordingly.
- If there are delays, keep notes of all communication and contact DWP again if needed.
What Happens Next?
The government has committed to wrapping up the correction process by March 2027. However, this doesn’t mean you should wait. The sooner you act, the better. Most underpayments are corrected within 12–24 weeks once reviewed and validated.
In some complex cases, particularly for widows or those divorced, it might take longer, but these groups tend to receive higher backpay awards, averaging over £11,000.
Why This Matters for Professionals?
If you’re a:
- Financial adviser helping retirees manage finances
- Policy advocate monitoring gender pension inequality
- Legal adviser dealing with estate planning
- Social worker or community elder helping older populations
…this issue matters a great deal.
Not only does it affect client income, but it also reflects systemic flaws in public record keeping and digital transformation. The case provides lessons in:
- Record synchronization across agencies
- Simplified public communication
- Outreach beyond digital-only channels
- Gender-disaggregated pension planning
Legal and Policy Implications
In 2023, the UK’s National Audit Office (NAO) published findings criticizing the DWP for delays and process flaws in identifying and fixing these cases. There are growing calls in Parliament for:
- Automatic compensation for lost earnings beyond the arrears
- Creation of a Pensions Ombudsman task force dedicated to retroactive corrections
- Updates to Child Benefit forms to include NI number checks by default
The entire affair has also reignited debates about the gender pension gap and how unpaid caregiving work is valued (or not) in retirement policy.
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