DWP Urges State Pensioners to Claim Thousands in Back Payments as Uptake Remains Low
The Department for Work and Pensions has issued a fresh appeal to state pensioners across the UK, urging them to check if they are owed thousands of pounds in back payments due to a historical administrative error. Despite the availability of significant funds, DWP officials have expressed concern that very few people have come forward to make a claim, leaving millions potentially unclaimed.
Historical Error Leads to Widespread Underpayment
The issue stems from a long-standing error involving Home Responsibilities Protection, which should have been applied automatically to those claiming Child Benefit. However, Child Benefit forms submitted before the year 2000 did not include a National Insurance number, leading to HRP not being correctly recorded on National Insurance records. This administrative oversight has resulted in many pensioners receiving less state pension than they were entitled to.
DWP permanent secretary Peter Schofield told Members of Parliament that he fears many state pensioners are still missing out on the money that they are entitled to. The error primarily affects those who took time off work between 1978 and 2010 to care for children or family members with long-term disabilities or illnesses, with women in their 60s and 70s thought to be the main affected group.
Alarmingly Low Claim Numbers Despite Available Funds
Recent figures reveal concerningly low participation in the claims process:
- As of March 2025, just over 67,000 applications were made to HMRC
- Only 21,878 cases were handed to DWP for processing
- Merely 12,379 cases resulted in paid arrears
- £104 million has been paid out in total
- The average arrears payout stands at £8,377
Mr Schofield acknowledged the disappointing response, stating: "The number of people coming through was much lower than we had anticipated it being." He explained that maintaining a large team ready to process claims that weren't materializing became operationally impractical given other departmental pressures.
Multiple Barriers Preventing Claims
Several factors appear to be preventing eligible pensioners from coming forward:
- Suspicion of communications: Many recipients didn't believe official letters were genuine, despite HMRC's efforts to reassure people through website announcements that these were not scams
- Contentment with current income: Some pensioners stated they were perfectly happy with their existing income levels
- Benefit concerns: Others worried that increased state pension might affect their Pension Credit entitlement and access to other benefits
- Historical distance: Some felt the events were too long ago and didn't want to come forward to claim money they were entitled to
System Remains Open for Claims
Despite the low uptake, DWP officials emphasize that the claims system remains fully operational. Mr Schofield reassured: "The door is still open. We continue to work on this. The system is ready to go. When people do claim, if people come forward, people are there to deal with the claim."
The department has confirmed that while the large-scale Legal Entitlements and Administrative Practice exercise has concluded, access to the claims system continues to be available. Officials are committed to processing any claims that come forward and encourage all state pensioners, particularly those who provided care between 1978 and 2010, to check their eligibility for these significant back payments.
