A group of people may have been underpaid on their State Pension, leading to potential annual underpayments of up to £2,000. This information was shared by former pensions minister Sir Steve Webb, who is now a partner at LCP (Lane Clark and Peacock). It seems that many individuals who claim the New State Pension and were already widowed when they retired could be owed a back payment. The issue is related to inherited State Pension, and LCP has created an online tool to help people check how much they should be receiving. Sir Steve emphasized the importance of ensuring that new claims are handled correctly by the Department for Work and Pensions (DWP), as there have been instances where inherited State Pension from a late partner was not automatically added to the calculation. This problem appears to affect widows or widowers claiming their State Pension, especially if their late spouse reached pension age before April 6, 2016, or passed away before that date. Sir Steve is calling for an urgent investigation by the DWP to determine the scale of this issue. The amount of inherited State Pension varies depending on individual circumstances, but it could be higher if the late spouse was an employee rather than self-employed, and if the widowed spouse is not receiving a pension from a company pension scheme. It is crucial for those who think they may be part of this group to use the online tool provided by LCP to check if they are owed any back payments. By addressing these errors, individuals can ensure they receive the full amount of State Pension they are entitled to.
