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Are you one of 100,000+ women missing out on £1,000s of state pension?
Who may be affected, and how to reclaim
Updated 18 April 2023
More than 230,000 women are thought to have been underpaid their state pension and could be due a payout – with the average amount being more than £6,000. Married women who hit state pension age before April 2016, including widows and divorcees – and the over-80s, whether married or not – should check if they're owed. While some affected women will now get an automatic payment, not all will. This guide explains who may be affected, and shows which groups still need to claim.
Important. Pension entitlement can be complicated, so unfortunately we can't tell you for certain whether you're owed. See this as a ready reckoner rather than a definitive guide – but if you believe you fit into one of the groups below and should be getting more, check.
Have you claimed child benefit anytime since 1978?
While this guide explains why married women may have historically been underpaid on their state pension, the Government recently revealed that a new pension issue has been uncovered affecting people who claimed child benefit. We've an MSE News story that explains this new issue in more detail.
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Who should check their state pension?
The first thing to note is that this guide only applies to women who reached state pension age before April 2016. If you reached state pension age after this, you'll be on the new state pension system, and none of this will apply to you.
Here we'll go through the different groups of women who are likely to have been underpaid – and should check their state pension entitlement as a result. Up to the end of March 2022, the Government has repaid £106 million in underpayments to more than 15,000 women.
There's some overlap in these groups though, so it's possible you could fall into more than one category. We've split the guide into two main parts, depending on whether you need to take action yourself:
- Those who need to pick up the phone and make a claim. These groups won't automatically get their pensions topped up. You should check if you're:
- A woman who got divorced AFTER reaching state pension age, and you haven't had your pension reassessed.
- A woman whose husband turned 65 before 17 March 2008 and you're being paid less than 60% of your husband's basic state pension.
- A married woman who's on ZERO basic state pension, but might be getting a small amount of additional state pension, also known as SERPS, or graduated retirement benefit.
If either of these apply to you, read more information on what to check and how to claim.
- Those who should receive their top-ups automatically. The Government is currently reviewing pension records to find those who should have received an automatic uplift in their pension, but didn't. This includes you if you're:
- A woman whose husband turned 65 on or after 17 March 2008 and you're being paid less than 60% of your husband's basic state pension.
- A widow whose husband died after 17 March 2008 and you were paid less than 60% of his state pension while he was alive.
- A widow whose state pension didn't increase when your husband died.
- A woman aged 80+ and, regardless of marital status, isn't being paid at least £85 a week in state pension.
The Government is prioritising those over 80 and those who have been widowed. But if any of the situations above apply to you, you will be contacted by the Department for Work and Pensions over the next few months if you're due a pension boost. You don't have to do anything, but it's worth checking if you're owed, and if so, how much.
Prefer to watch rather than read? This video, courtesy of ITV's The Martin Lewis Money Show from 29 October 2020, deals with many of the issues tackled in this guide.
In the video, Martin refers to women whose husbands reached state pension age after April 2008 and said they should check – this is now no longer the case, as they'll now get an automatic payout.
You can turn on subtitles in the video by clicking the closed captions icon at the bottom right of the video.
MSE founder Martin Lewis explains the issues surrounding the women underpaid their state pension
Embedded YouTube Video
Women who URGENTLY need to check and reclaim if they're missing out
While more women who have been underpaid will now see their payments boosted automatically, there are still many who will have to phone up to make a claim. Here we list the ones who have to actively make a claim.
1. If you're a married woman where all below apply
- You hit state pension age before April 2016.
- Your state pension is less than 60% of your husband's basic state pension.
- Your husband turned 65 before 17 March 2008.
Married women who hit state pension age before April 2016 and get less than 60% of their husband's basic state pension are entitled to a boost up to that 60% figure.
The basic state pension for 2023/24 is a maximum of £156.20 a week – your husband may get more than this amount in top-ups, but you need to compare your basic state pension with his basic state pension for this.
When the state pension was first set up after the Second World War, as men were typically the primary earners and women didn't work for as many years, married women were given a proportion of their husband's state pension. This remained the case until 6 April 2016, when it was changed. Those who hit state pension age before then could be entitled to a boosted pension amount – yet this may not have happened for some, including women whose husbands turned 65 before 17 March 2008.
If you're in this group, the boosted payment was NOT automatic and you needed to claim it. However, many women didn't know about it and so didn't, meaning they missed the increase. So if you're in this group you'll have to submit a claim.
Can I backdate my claim? You can only get backdated payments for the boosted amount for 12 months. It's worth noting some women in this group are challenging this rule with the Parliamentary Ombudsman – see more on this (and how to try it) below.
2. If you're a divorced woman (and got divorced after reaching state pension age) and should have benefited from your ex-husband's national insurance record
If you're a woman who's reached state pension age, was married and is now divorced, you can substitute the national insurance record of your ex-husband for your own up to the date of your divorce (provided you didn't remarry before you reached state pension age).
This means you may be eligible for an increased state pension, potentially up to 100% (£156.20 a week in 2023/24).
However, if the divorce happened after you reached state pension age, you will NOT get an automatic top-up – instead you will need to make a claim. (Women who got divorced before reaching state pension age should automatically have this taken into account when they start receiving their state pension.)
Can I backdate my claim? These claims cannot be backdated.
3. If you're a married woman and all the below apply (small group affected, but HUGE payments possible)
- You hit state pension age before April 2016.
- You're on ZERO basic state pension (but might be getting a small amount of additional state pension, also known as SERPS, or graduated retirement benefit – the old version of SERPS).
- Your husband turned 65 before 17 March 2008.
Women in this group need to be on zero basic state pension to qualify, but that can include those who are on zero basic state pension but receive a small amount of additional state pension, also known as SERPS – State Earnings-Related Pension Scheme – or its predecessor, graduated retirement benefit.
If you're in this group and you're getting less than 60% of your husband's basic state pension, you're entitled to a boost up to that 60% figure.
Here's where it gets interesting. Under a little-known rule, women in this specific group are allowed to claim back underpaid pensions ALL the way back to when their husband started to draw his state pension (typically at age 65). This is because they're deemed as having 'deferred' their pension rather than having been underpaid it, as they never had a basic state pension to begin with.
How much could I be due? Only about 5,000 women in the UK fall into this group but they could be due £10,000s.
The current rate of married women's pension is £93.60 a week (it was lower in previous years, but goes up every April in parallel with the basic state pension). If you add up 52 weeks of married women's pension from 2008/09 to 2020/21, that gives you a total of £45,604.
Though there are things to consider. For example, if your husband reached state pension age earlier than 2008, the payment could be larger, but also, if your husband decided to defer his state pension, your payout will only be backdated to when he actually started drawing it – which could affect how much you get.
As this is treated as a 'deferred' claim, the normal rules around deferrals apply (under the old state pension system, as you reached state pension age before April 2016). This means you can:
- Get a lump sum plus interest (which tends to be small), plus 60% of your husband's state pension in future.
- Or you can convert it all into a (much) higher rate of state pension for the rest of your life.
Which option is better for you will depend on your personal circumstances – a letter sent to you when you claim will outline the two options and how much you would get for each.
Can I backdate my claim? YES, MOST DEFINITELY! You can get backdated payments ALL the way back to when your husband turned 65.
4. If you're the heir of a woman who was underpaid state pension while alive and has since died
It's possible to claim on behalf of a woman who's died, if she was underpaid state pension while she was alive. This could potentially apply to many of the categories above – for example, if a woman was affected by the Department for Work and Pensions' (DWP's) computer error, didn't know she could claim a boosted pension as she was married, was a widow whose pension wasn't increased when her husband died, and so on.
Whether or not you'll get an automatic payout depends on which category/categories the claim falls under. If unsure, it's best to contact the Pension Service.
Can I backdate my claim? How far back you may be able to claim any underpayment will depend on what grounds you're claiming on.
To check if you have been underpaid and are owed, contact the Pension Service and ask about your situation (also do this if you fall under any other category, but want to be sure you will get what you're due). You can:
- Call 0800 731 0469 (press option two, then option four, then option two)
- Request information on behalf of someone who's died through DWP's online tool
- Or write to:
The Pension Service
Post Handling Site A
Wolverhampton
WV98 1AF
Or you will find other contact details on the Pension Service website. Please be aware that the Pension Service is working through these historic cases so may not be able to give you any information at this time. It's said that those who are owed underpaid state pension will be paid it in due course.
If you do find you're being paid too little, please email us and let us know why, and what the DWP said when you got in touch to claim.
Married woman getting less than 60% of your husband's basic state pension? Use a special calculator to do an initial check
If you believe you may have missed out because you didn't know you could claim a boosted pension, you can do a quick initial check to see if you may be owed using an underpaid state pension calculator developed by pensions advisory firm Lane Clark & Peacock.
You'll need to enter a few details about your and your husband's ages, the dates when you both hit state pension age, and details of how much you're both getting as your basic state pension amounts.
Told you can't submit a claim? Don't give up
Some have reported an automated message saying it can't help at the moment due to the coronavirus pandemic and to call back another time. But there is a team working on these claims – and it's confirmed with us there is no issue, so hold the line and you will eventually get through.
Women who should now get AUTOMATIC top-ups if they have been underpaid
There are several groups of women who may have been underpaid due to an IT glitch. This includes ANYONE where something should have triggered an automatic reassessment but it never happened (for example, turning 80).
Until now, you had to contact the Department for Work and Pensions (DWP) to ask to start being paid state pension at the correct rate, plus claim backdated payments – but to do so, you would have needed to know you were affected.
However, the DWP is now systematically working its way through pension records to find out who's been underpaid because of its errors, and will now be refunding them automatically. It's estimated that around 237,000 pensioners (mostly women) could be owed an average payout of more than £6,000 – though there'll be no backdated interest added to the payout. Any money you're owed will be paid to the same account that you get your state pension paid to.
There's no timeframe for when people will be repaid, though the DWP has recruited 473 staff to work out how many people have been underpaid, and the exercise is expected to take until the end of 2023. It says you can still contact it to make a claim, but didn't promise that doing so would bump you to the front of the payout queue.
These are the groups who should be contacted over the next few months about an uplift in payments:
- You hit state pension age before April 2016.
- Your state pension is less than 60% of your husband's basic state pension.
- Your husband turned 65 on or after 17 March 2008.
Married women who reached state pension age pre-April 2016 and get less than 60% of their husband's basic state pension are entitled to a boost up to that 60% figure. This is about the basic state pension amount, which for 2023/24 is a maximum of £156.20 a week, so if your husband gets more than this amount in top-ups, don't factor this in.
Up until 6 April 2016, married women were given a proportion of their husband's state pension. This dated back to when men were typically the primary earners and women didn't work for as many years. So those who hit state pension age pre-April 2016 could be entitled to a boosted pension amount. This may not have happened for some yet, including women whose husbands turned 65 on or after 17 March 2008.
Prior to March 2021, this group had to claim the increase, but the DWP is now working its way through pension records to find people who've been underpaid.
Can I backdate my claim? If you've missed out due to a computer error, you can get backdated payments all the way back to your husband's 65th birthday (or to when you reached state pension age if this is later). This can be £1,000+ a year, and backdated payouts of about £10,000 are not unusual.
2. If you're a widow whose pension wasn't increased when your husband died, or who may have been underpaid while your husband was still alive
Those who have lost their husbands may also have been underpaid for one or both of the following reasons – so check if you fall into either category:
- Widows who may have been underpaid while their husband was still alive. You could have been underpaid while your husband was alive for different reasons, including the problems we've highlighted for married women above. If you hit state pension age before April 2016 and got less than 60% of your husband's basic state pension while he was still alive, you could have been hit by the DWP's computer error or not known you needed to claim a top-up.
If your husband died after 17 March 2008, the claim will now be automatic, so the DWP will contact you if you're owed (if you were widowed before this, you would have got the uplift automatically).
Can I backdate my claim? If your husband died after 17 March 2008, the payout will be backdated to your husband's 65th birthday, or when you hit state pension age if that came after.
- Widows whose pension wasn't increased when their husband died. Widows will often see their basic state pension increase when their husband dies, based on their late husband's contribution, potentially up to a maximum of £156.20 a week in 2023/24. Depending on your late husband's date of birth, you may also be able to inherit between 50% and 100% of his additional state pension (also known as SERPS – State Earnings-Related Pension Scheme – or second state pension). This should typically have happened automatically, but some women have been missed out due to the IT glitch.
While the specifics can be complex, as a general rule, if you were widowed and DIDN'T see your pension increase, you may be due an automatic payout – and should look out for a letter from the DWP over the coming months.
Can I backdate my claim? Any payout you're due will be backdated to when your husband died. While fewer are thought to be affected than the married women who have lost out, the total amounts underpaid can be massive – and in some cases have even topped £100,000.
It's estimated that 37,000 people could fall into this category. Usually the state pension you get depends on your national insurance contributions. Yet if you're aged 80 or over and get less than £85 a week in state pension, you may be eligible for the little-known 'category D' non-contributory state pension – that's one that isn't dependent on the national insurance contributions you or your spouse may have made. This tops up your state pension to £85 a week.
To qualify, you'll need to satisfy a simple residence test and so must meet the following requirements:
- You must have been living in the UK, Channel Islands, Isle of Man, a European Economic Area country or Switzerland on your 80th birthday (or the date of your claim if later).
- You must have lived in England, Scotland or Wales for at least 10 years in any 20-year period after your 60th birthday (this doesn't need to be 10 years in a row).
While this guide is about women being underpaid, a 'category D' pension isn't gender-specific – so it's possible men may be able to claim this too. This type of pension is simply designed to ensure that people over 80 receive a certain minimum pension, even if you haven't made enough national insurance contributions.
There are two groups here. If you already get a state pension, you don't need to make another claim for this as this should have happened automatically, so the DWP will now give you an automatic top-up if you were paid too little.
However if, for whatever reason, you're not getting a state pension at all at the moment, you'll need to make a claim. Though this is relatively rare, it could be that you had zero basic state pension in your own right (as you used to need a 25% national insurance record to get anything) and were perhaps entitled to little or nothing by way of other elements of the state pension, so simply didn't bother.
Can I backdate my claim? Yes, if you were in the first group – so already receiving a pension – you can claim back to when you turned 80.
4. If you're the heir of a woman who was underpaid state pension while alive and has since died
If you're the heir to a woman who was underpaid state pension before she died, then it's possible the DWP will contact you with details of an automatic payout that's due to your late relative's (or friend's) estate.
This could potentially apply to many of the categories above – for example, if a woman was affected by the DWP computer error, didn't know she could get a boosted pension when she was over 80, was a widow whose pension wasn't increased when her husband died, and so on.
If you are the heir of a woman who you think was underpaid pension while she was still alive, it's best to wait a few months to see if the DWP contacts you about a payout. If not, or you're not sure she was owed, it's best to contact the Pension Service or use DWP's online tool to request information.
Can I backdate my claim? How far back you may be able to claim any underpayment will depend on what grounds you're claiming on.
In this clip meet Gill, who, having watched Martin explain the issues, suddenly found she was due a life-changing amount of money (courtesy of ITV's The Martin Lewis Money Show – 29 October 2020).
This was filmed back when you needed to claim the backdated amounts owed, so may make references to claiming which are no longer relevant.
You can turn on subtitles in the video by clicking the closed captions icon at the bottom right of the video.
MoneySaver Gill tells of how she discovered she'd been underpaid a total of £82,000
Embedded YouTube Video
It's not just Gill. Robert emailed us with his success when he and his wife checked her pension...
After seeing your article, I got in touch with the Government's Pension Service, who agreed there was something wrong.
After 10 days, my wife received information that a cheque for £22,350 would be paid directly to her account – three days after this, she received a further £645 as interest. And her pension has been increased from £135 per month to £326 per month!
Thanks very much for telling everyone about this problem.
And another success story emailed in...
I wrote to the DWP one year ago enquiring about the pension underpayment for women, as mentioned on your programme. Last week, to my surprise I heard back from them saying I was owed not one, but TWO cheques in pension underpayment – one cheque for £3,401 and a second for £8,996! The larger amount was due to the fact I divorced in 2011 and my state pension had been revised.
Thank you so much for this information.
And another...
After seeing Martin Lewis's show in March 2021 about women historically being underpaid their pensions, I got in touch with DWP to query my mother's state pension. She had been a stay-at-home mum, but divorced in 2002, after she reached state pension age, and her pension was never reassessed. After several months of chasing and appeals, she finally received a payout of more than £41,000 in January 2022, relating to 20 years of underpayments. And she has had her state pension increased from £82.45 to £141.85 a week from April 2022.
Thank you Martin Lewis and team for prompting us to look into it!
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Have men also been underpaid? It's much rarer – but if in doubt, check
We've focused in this guide on women who were underpaid the state pension, as they are most likely to have lost out in the scenarios outlined above.
We asked former Pensions Minister Steve Webb, who's campaigned to highlight this issue, if men could also be affected. He told us in most cases they won't be, as the amount of state pension they have built up in their own right will mean they wouldn't gain anything from the record of their wife, ex-wife or late wife.
However, he told us there will be "rare" cases where men are affected – so if you think you could be owed, it's always worth checking directly with the Pension Service.
Bear in mind too that, as outlined above, entitlement to a 'category D' pension isn't gender-specific – so if you're a man aged 80+ who gets a state pension of less than £85/week, you may well be being underpaid, so check.
How will I be taxed if I receive a historic pension payment?
The Department for Work and Pensions (DWP) has confirmed that anyone who receives a pension payment relating to previous tax years will only be assessed for tax for the current tax year, and the four before that. So for example, if you receive a lump sum payment that relates to the last 10 years, only the last five years will be taxed.
The lump sum will be treated as income, so if the amount you receive (or your total income for the relevant tax year) exceeds your personal allowance, it will be taxed at the basic, higher or additional rate, depending on your overall income. HM Revenue & Customs (HMRC) will tax the amount as if you'd received it in the year you were supposed to.
DWP will send a letter to confirm the money you're owed and what your new state pension amount will be, if this has been reassessed. DWP will also inform HMRC of the payment you receive, so you don't need to do anything about tax owed until you're contacted by HMRC.
Generally, HMRC will collect the tax owed by adjusting your tax code and spreading the repayment over 12 months. However, any tax relating to the oldest of the five tax years will be requested as a one-off payment, but only once the DWP has reviewed the case and made payment.
We've been told that the letters sent by HMRC requesting underpaid tax don't make reference to it relating to your underpaid pension, but you can expect the letter from HMRC soon after receiving the DWP payment.
If you're self-employed, you may need to submit a self-assessment tax return to pay the correct amount of tax on your backdated pension payment. You may need to seek advice from a qualified accountant to ensure you're paying the right amount of tax.
If you do receive a lump sum or your pension payments increase, understand the impact on your benefits
If you get a lump sum of backdated pension, or start to receive a higher regular monthly pension, there can be a knock-on effect on your benefits. Many benefits, such as pension credit, housing benefit and council tax support, are means-tested, so having extra cash in your bank or a larger monthly pension payment could reduce or even wipe out your benefits.
Check out our Pension credit guide and Benefits checker to understand how this may affect your benefits.
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