LONDON—For thousands of women across the UK, a financial windfall has landed, with some pocketing up to £12,000 in state pension back payments. The Department for Work and Pensions (DWP) is scrambling to fix a decades-old blunder that left pensioners shortchanged. This isn’t pocket change; it’s a lifeline for many, and the government’s finally owning up to the mess.
The issue kicked off years ago, rooted in errors that underpaid state pensions, particularly for women. Some were shorted for decades, their retirement funds quietly bleeding due to bureaucratic slip-ups. On April 16, 2021, the DWP launched a massive correction exercise, combing through hundreds of thousands of cases. By March 2025, they’d flagged 130,948 underpayments, coughing up a staggering £804.7 million to those owed. The average payout? Around £6,000, though some women are seeing checks as high as £12,000.
Who’s eligible? The net is wide but specific. Women over 66, especially those who reached pension age before April 2016, are the main focus. Many are widows, or women who relied on their husband’s pension contributions, caught out by outdated rules that didn’t properly credit their entitlements. Others include those whose pensions weren’t adjusted when they hit state pension age, leaving them with less than they were due. The DWP’s still digging, but they’ve already cleared most cases, with a few stragglers waiting on extra paperwork.
The process isn’t automatic for everyone. Some women need to reach out to the Pension Service to claim what’s theirs. It’s a slog—forms, phone calls, maybe digging up old records—but the payout can be worth it. For many, it’s not just money; it’s justice for years of being overlooked.
The government’s keeping mum on how many more cases are left, but they’re adamant about wrapping up the exercise soon. For now, thousands of women are seeing their bank accounts swell, a rare win against a system that’s often slow to admit its mistakes.
130,948 underpayments identified between January 2021 and March 2025. £804.7 million paid out. Women over 66, especially pre-2016 pensioners, are primary recipients. Contact Pension Service to check eligibility.