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Join Which? MoneyWoman underpaid state pension wins 'landmark' case - what it means for you
Daphne was underpaid her state pension for 12 years
Thousands of married women who may have missed out on a higher state pension have been given a ‘glimmer of hope’ after a ruling against the Department for Work and Pensions (DWP).
The ruling relates to a married woman with a low state pension who was due an increase once her husband retired in 2008, but at the time had to make a claim even though she had already claimed her own state pension.
By the time she contacted the DWP in 2020, she was told her state pension uplift would only be backdated by 12 months, to 2019.
Here, Which? explains the ruling by the Independent Case Examiner (ICE) and gives advice about what to do if you think you've been underpaid your state pension.
How claiming a state pension uplift has changed
Married women who reached state pension age before April 2016 are entitled to 60% of their husband’s basic state pension when he retires. This is called a category BL uplift.
Before 17 March 2008, women had to claim this uplift, even if they had already claimed their own state pension.
After this date, DWP changed the rules so the uplift happened automatically.
Those that have to claim for a BL uplift can only backdate their claim by 12 months.
- Find out more: state pension age calculator
Why didn't women claim the uplift?
According to former pensions minister Sir Steve Webb, many women didn't know they had to claim for a second time once their husbands reached state pension age.
He said that the DWP measures to ensure women knew how the system worked were ‘highly ineffective’ such as leaflets that had to be requested and relying on husbands passing on forms to their wives.
In an episode of the Which Money podcast from 2021, we heard from several women who agreed with this. One told the podcast: ‘We did not know to claim, there was nothing, no letter telling me I needed to claim to get another £30 a week.'
Landmark ruling: 'It was their mistake, not mine'
Daphne Bennett* from Woking, Surrey, claimed for her basic state pension in August 2003 and was awarded £38.66 a week based on her National Insurance record which was 42% complete.
When her husband Tim reached state pension age in early 2008, he applied for his own state pension over the phone and answered all the questions he was asked, including about Daphne’s state pension.
At this point, Daphne was entitled to 60% married woman’s pension (instead of the 42% she received in her own right). But she would only be paid this higher rate if she submitted another state pension claim form.
However, Tim was told on the phone no forms were needed and no claim form was ever issued to Daphne.
It was not till 2020 that Daphne saw coverage about married women’s pensions and realised she could be on a higher rate. She applied and was successful, getting an increase of £24 per week, but this was only backdated until 2019.
She complained to the DWP about maladministration on the basis that if she had ever been told she needed to fill in a second form she would have done so.
The DWP rejected her complaint but the Independent Case Examiner has overruled DWP and ordered the uplift to be backdated to 2008, plus interest and compensation for ‘distress and inconvenience’.
Daphne, 80, said: ‘When I first found out that I could have been on a higher pension for over a decade I was surprised and puzzled. Then when I claimed and was told it could only be backdated for one year, I felt it was unfair. It was their mistake, not mine.
'My husband reads paperwork carefully and I would obviously have made a second claim for the higher state pension if anyone had actually told us that was how the system worked.’
- Find out more: National Insurance and state pension
'Old processes were hopelessly inadequate'
In response to the ruling Sir Steve Webb, who helped uncover the scandal surrounding women who had been underpaid their state pension, said it offered women a ‘glimmer of hope’.
He said: ‘The old processes for alerting women to the need to claim their state pension twice were hopelessly inadequate.
‘We’ve had it suggested that women should have gone to the Job Centre to get an information booklet or have been told that they had to rely on their husbands ticking a box on a form.
‘I hope that this landmark case will lead to many thousands more women getting justice.’
In response, a spokesperson from the DWP told Which?: 'As upheld by a court last year, married women whose husbands reached state pension age after them, but before March 17 2008, are required by law to make a claim for an uplift to their state pension.
'Our priority is ensuring pensioners receive the financial support to which they are entitled and the action we are taking now will correct historical underpayments made by successive governments.'
- Find out more: state pension underpayments hit £670m – are you owed money?
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Listen nowWhat does the ruling mean for other women?
Webb said it was important to remember that any ICE decision only relates to the particular circumstances of the individual case and the ICE has rejected several similar complaints in recent months.
Those cases have now gone to the Parliamentary Ombudsman for further review.
However, Webb added that this ruling ‘opens up the potential’ for other women to claim compensation where they, and their husbands, followed all the correct processes but were never sent the necessary claim form.
There is also a chance that the Parliamentary Ombudsman may rule in favour of the wider group of women in a similar situation.
Find out more: how much state pension will I get?
What to do if you think your state pension is too low
The DWP says that any woman who believes they may be able to claim a Category BL state pension should contact the department.
You can contact the Pension Service through the Freephone (UK) number 0800 7310469 or on the Pension Service website.
The DWP will mark the date of the first point of contact to calculate the 12-month backdated payment.
If you think the 12-month payment is unfair you can appeal it. Daphne's appeal was on the basis of 'maladministration', which is how DWP ran the system.
How are state pension errors being checked?
In 2020 it was revealed that thousands of pensioners had been left short-changed due to a combination of complex rules about entitlements under the old state pension system and computer errors made by the DWP.
The DWP started an official correction exercise – known as a Legal Entitlements and Administrative Practices (LEAP) - process in January 2021. It's due to be completed by the end of this year.
To date, the government has repaid £300m to around 46,0000 pensioners who were underpaid their state pension, due to system errors.
However, there's still a long way to go to correct the mistake – the DWP estimates that as many as 237,000 pensioners have been underpaid, with underpayments totalling £1.46bn.
* surname has been changed
