DWP ‘looking at solutions’ to fix errors with state pension payments

The Division for Operate and Pensions (DWP) suggests it is searching at ways to deal with glitches in a a long time-old IT process which have led to folks receiving the erroneous pension quantities.

The BBC reported the difficulty relates to an ageing laptop or computer technique released in the 1980s and an incapacity to accurately uprate an aspect of the point out pension known as the Graduated Retirement Reward (GRB).

GRB is an addition to the basic condition pension for people today who labored during some of the 1960s and 1970s.

While some persons might have been underpaid, others may perhaps have been overpaid and the problem has occurred more than “successive governments”, in accordance to the DWP.

It is comprehended that 98% of over and underpayments are of 1p or 2p per week, and all are under 10p.

A DWP spokesperson mentioned: “Our precedence is making sure each and every pensioner receives the economical guidance to which they are entitled and most Graduated Retirement Benefit awards are proper.

“Where they are not, the broad the vast majority of around and underpayments are of 1p or 2p per week and we are on the lookout at alternatives to this difficulty which has occurred less than successive governments.”

Sir Steve Webb, a former pensions minister who is now a husband or wife at Lane Clark & Peacock, mentioned: “Although the errors are normally smaller, this could have knock-on consequences, possibly wrongly depriving some people today of substantially more substantial quantities in usually means-tested rewards these kinds of as Pension Credit.”

He also pointed out that the issue is in addition to other pension payment blunders.

The DWP has formerly been strongly criticised above the dealing with of extended-time period state pension underpayments.

It has underpaid an approximated 134,000 pensioners, generally ladies, more than £1 billion of their point out pension entitlement, with some mistakes courting as considerably back as 1985 and a correction exercising was commenced in January 2021.

Sir Steve a short while ago wrote to pensions minister Guy Opperman, providing illustrations of even more problems which have been going on as a short while ago as this calendar year, and calling for further more action to make improvements to accuracy.

He reported the most up-to-date inaccuracies to come to light also prompt thoughts about how quite a few other errors might exist.

Sir Steve extra: “Parliament will assume a penned statement from the minister at the earliest opportunity with a complete explanation.”

Labour MP Sir Stephen Timms, chairman of the Get the job done and Pensions Pick out Committee, explained to the BBC: “A fantastic offer of money has been spent on the Common Credit score programme – which is a good program – but other rewards like the condition pension are relying on ageing and creaking units.”