London Daily

Focus on the big picture.
Thursday, Nov 05, 2026

UK state pension systems not fit for purpose – MPs’ report

UK state pension systems not fit for purpose – MPs’ report

Department for Work and Pensions criticised for 'shambles’ that saw pensioners short-changed by more than £1bn
The UK’s state pension payment system is not fit for purpose, resulting in the “shameful shambles” of an underpayment scandal that left tens of thousands of pensioners short-changed, according to a scathing report from a committee of MPs.

The public accounts committee (PAC) also lambasted the Department for Work and Pensions for its “complacency”, and accused it of not having been “sufficiently transparent” to parliament about the problems.

In September last year it emerged that the DWP was estimating it had underpaid 134,000 pensioners, mostly women, a total of more than £1bn of state pension cash that they were entitled to.

At the time, the National Audit Office said this long-term underpayment of state pensioners – some problems date as far back as 1985 – was the result of repeated errors that were almost inevitable amid complex rules and outdated IT systems.

It emerged that those affected that the DWP could trace would be paid an average of £8,900 each.

The state pension is paid to around 12.4 million people, and these errors affect pensioners who first claimed it before April 2016 and who do not have a full national insurance record or should have inherited additional entitlement from their deceased partner.

Of the 134,000 people hit by these problems, it is thought that 94,000 are alive – about 0.9% of those currently claiming the pre-2016 basic state pension. Where those affected have died, the department owes the pensioners’ estates.

The PAC decided to investigate the issue, and said the underpayments uncovered ranged between one pence and £128,000.

In February 2021 the Guardian featured the case of Angela Jenner, now 79, who was getting only 86p a week as her state pension but, after making a claim, saw this increased to £80.45 a week, and also learned she was owed £42,700.

Dame Meg Hillier, the Labour chair of the committee, said that for decades the DWP had relied on a state pension payment system that was “clunky” and required staff to check many databases, “and now some pensioners and the taxpayer are paying in spades”.

She added: “This is a shameful shambles. The PAC expects the DWP to set out the step changes it will make to ensure it is among their last.”

The report stated that the pension payment system “is not fit for purpose”, and set out a series of recommendations.

The committee said the department was now on its ninth go at fixing the mistakes since 2018, and that this “comes at great cost to the taxpayer” – the bill for staff costs alone is expected to top £24m by the end of 2023.

The MPs also said the DWP had “left people in the dark over their entitlement”, adding: “The department also admits that many other pensioners are under-claiming their state pension … these pensioners need clearer information to act or risk missing out on significant sums.”

Responding to the report, a DWP spokesperson said resolving the historical state pension underpayments that had been made by successive governments was a priority, and it was committed to doing so as quickly as possible.

“We have set up a dedicated team and devoted significant resources to processing outstanding cases, and have introduced new quality control processes and improved training to help ensure this does not happen again. Those affected will be contacted by us to ensure they receive all that they are owed.”

The spokesperson added that the DWP would respond formally in due course.
Newsletter

Related Articles

0:00
0:00
Close
Department for Business and Trade Overhauls Protection Standards for Digital Animation and Moving Image Files
Intellectual Property Office Introduces Thirty-Month Grace Period for International Product Launches
Intellectual Property Office Targets Anti-Competitive Filings With New Powers to Verify Novelty Before Registration
Creative Industries Minister Ian Murray Praises Regulatory Reforms to Safeguard Small Businesses and Micro-Enterprises
Government Unveils Major Design Framework Overhaul to Protect British Creators and Boost Economy
Global Asset Management Reports Surge in British Dividend Payouts Driven by Strong Financial and Mining Sectors
HM Treasury Confirms Strongest Group of Seven Growth Figures as Fiscal Consolidation Plans Progress
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
National Health Service Digital Reports Major Breakthrough in Reducing Elective Waiting Lists Across England
Chancellor Rachel Reeves Outlines Infrastructure Spending Reforms to Boost Regional Economic Growth Across Northern England
Bank of England Holds Baseline Interest Rate at Five Percent Amid Persistent Core Inflation Pressures
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
×