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The £800 Million State Pension Boost: 5 Ways 400,000 People Are Set To Gain (And How To Check If You’re Owed Back Pay)

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The UK State Pension system is currently undergoing a massive, multi-year correction exercise, leading to a permanent ‘boost’ for hundreds of thousands of pensioners, with over £800 million already repaid as of the latest figures in early 2025. This financial lifeline is the result of a widespread historical underpayment scandal, which has primarily affected certain groups of women, including married women, widows, and the over-80s. The ongoing correction is a major financial event for the UK’s elderly population, ensuring individuals receive the full entitlement they were previously denied due to systemic errors.

The headline figure of "400,000 people" actually relates to two distinct, yet equally critical, pension issues: the confirmed, ongoing DWP underpayment correction, and a separate, high-profile campaign demanding a boost for over 400,000 UK pensioners living abroad whose payments are currently "frozen." This article breaks down both issues, focusing on the confirmed DWP payments and explaining exactly who is eligible for a life-changing backdated payment and a permanent increase in their weekly State Pension.

The DWP Underpayment Correction: Who is Getting the Confirmed Boost?

The Department for Work and Pensions (DWP) launched a large-scale State Pension correction exercise in January 2021 after becoming aware of historical errors in its computer systems. The errors mainly relate to the automatic uprating of the State Pension for certain groups under the old rules (pre-2016). As of March 2025, the DWP has identified and corrected 130,948 underpayments, paying out a total of £804.7 million in arrears.

While the number of corrected cases is around 131,000, the total number of people who have had their pensions permanently increased—a genuine boost—is significant, and the DWP continues to review tens of thousands of cases. The average arrears payment for married women alone is substantial, demonstrating the scale of the error.

5 Main Categories Affected by the Confirmed Underpayments

The DWP has identified several specific groups who were historically underpaid. If you or a family member fall into one of these categories, you should check your entitlement immediately, as the DWP is prioritising these reviews.

  1. Married Women (Category BL): This is the largest group affected. Married women whose husbands reached State Pension Age (SPA) before 17 March 2008 were entitled to have their basic State Pension automatically increased to 60% of their husband's basic rate. The DWP's computer system often failed to apply this increase automatically. The average arrears payment for this category is approximately £5,378 per case.
  2. Widows and Widowers: Women whose husbands passed away and whose State Pension remained unchanged after their spouse's death may have been underpaid. They should have been entitled to inherit a portion of their late husband’s State Pension, which was often missed. This includes cases where the widow was already receiving a State Pension based on her own contributions.
  3. Over-80s (Category D): Individuals aged 80 or over who are receiving a State Pension of less than £85 per week (as of the current date) may be entitled to an increase, regardless of their National Insurance (NI) contribution history. This entitlement was often overlooked.
  4. Divorcees: Women who divorced after reaching State Pension Age may have been entitled to substitute their ex-husband’s NI record for their own to increase their pension, a step that was not always correctly actioned.
  5. Missing Home Responsibilities Protection (HRP): This is a newer, major category of underpayment. HRP was a scheme that protected the State Pension entitlement of parents and carers who stayed home. The DWP is now reviewing over 200,000 cases where HRP may have been missing from NI records between 1978 and 2010. This error affects both men and women and could lead to significant arrears.

The Campaign for 400,000 People: Unfreezing Overseas Pensions

The second major issue that uses the "400,000 people" figure is the ongoing, high-profile campaign to end the 'frozen' State Pension policy. Unlike the DWP underpayment correction, this is a boost that is being *demanded* by campaigners, not one that has been officially approved by the government.

Approximately 400,000 UK pensioners living overseas do not receive the annual increase in their State Pension, which is normally guaranteed by the 'Triple Lock' mechanism in the UK. This means their pension remains at the rate it was when they first moved abroad or when they first started claiming it.

Which Countries Have 'Frozen' Pensions?

The policy is applied based on the country of residence. Pensions are up-rated annually in the UK, the European Economic Area (EEA), Switzerland, and a handful of countries with specific social security agreements (such as the USA, Philippines, and Turkey).

However, pensions are frozen in over 100 other countries, including major destinations for British expats. The list of countries where pensions are frozen includes:

  • Canada
  • Australia
  • New Zealand
  • South Africa
  • Jamaica
  • India
  • Most Commonwealth nations

Campaigners argue that this policy is discriminatory and are pressuring the government to unfreeze these pensions, which they estimate would cost the government a relatively small amount compared to the total State Pension budget.

How to Check and Claim Your Potential State Pension Arrears

If you believe you or a relative may have been underpaid, especially if they fall into one of the five categories listed above, it is crucial to take action. The DWP's correction exercise automatically reviews most cases (especially married women, widows, and over-80s), but some people may need to make a claim, particularly for the HRP issue.

The Essential Steps to Verify Your State Pension

To determine if you are owed a backdated payment or a permanent increase, follow these steps:

  1. Contact the DWP’s Pension Service: The most direct route is to call the DWP’s dedicated State Pension correction line. You will need to provide your National Insurance (NI) number and details about your marital status and your husband’s (or late husband’s) date of birth.
  2. Check Your National Insurance Record: If you are concerned about missing Home Responsibilities Protection (HRP), you should check your NI record online via the government’s website. Missing HRP years can be corrected, which will increase your State Pension.
  3. Use the LCP Calculator: Leading pension experts, like Lane Clark & Peacock (LCP), have published online calculators specifically for married women to estimate if they are likely to have been underpaid. While not official, these tools can provide a strong indication of your status.
  4. Seek Independent Advice: Organisations like Citizens Advice or a regulated financial advisor can help you understand the complex rules of the old State Pension system and whether you have a legitimate claim.

The DWP has committed to completing the State Pension correction exercise for the vast majority of cases by the end of 2025. However, the HRP review is expected to take longer, potentially extending into 2026. Therefore, checking your entitlement now is essential to ensure you are not missing out on a significant and much-needed financial boost.

The £800 Million State Pension Boost: 5 Ways 400,000 People Are Set to Gain (And How to Check If You’re Owed Back Pay)
state pension boost for 400000 people
state pension boost for 400000 people

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