The UK’s state pension system has recently faced serious criticism as HMRC reportedly stopped sending letters to many individuals who may be owed state pension underpayments. This move could affect thousands of pensioners who are unaware they are entitled to additional funds. With the government under pressure to correct past errors, many retirees are left confused, worried, and unsure how to claim what they rightfully deserve.
In this article, we’ll explain why HMRC halted the letters, who may be affected, what steps to take if you suspect you’re owed money, and how to protect your future pension payments.
What Led To The State Pension Underpayment Scandal?
The issue of state pension underpayments isn’t new. It has been under investigation for years. In 2021, the National Audit Office (NAO) reported that more than 134,000 pensioners had been underpaid over £1 billion due to errors in the Department for Work and Pensions (DWP) systems. These underpayments mainly affected women, especially widows, divorced individuals, and those who relied on their spouse’s contributions.
The government had promised to reach out to all those affected through official letters – until now. The latest reports suggest that HMRC has paused or stopped sending these letters, raising concerns that many eligible pensioners will never be informed about their missing payments.
Why Did HMRC Stop Sending Letters?
According to recent updates, HMRC paused communications due to “internal capacity constraints” and the need to process existing claims. While they claim this is a temporary step, there is no clear timeline on when the letters will resume. This decision has been criticised by MPs, charities, and pension campaigners who fear that vulnerable pensioners are being left in the dark.
Without formal notification, it’s now up to individuals to come forward themselves — but many simply don’t know they’ve been underpaid in the first place.
Who Is Most Likely Affected?
Not all pensioners are at risk of underpayment, but specific groups have been identified as most vulnerable. If you fall into any of the following categories, it’s strongly recommended to check your records:
- Women who reached state pension age before April 2016
- Widows and widowers who may have inherited pension rights
- Divorced individuals whose contributions may not have been correctly calculated
- People over 80 receiving less than the full basic state pension
- Married women on lower pensions due to incomplete NI contributions
These groups were promised automatic corrections by the government. However, now that letters are not being sent, many may never realise they are eligible for back payments.
How Much Money Could You Be Owed?
The average underpayment varies, but in many cases, it ranges between £3,000 and £10,000. Some individuals have reported being owed even higher sums. In fact, a few pensioners received backdated payments of over £20,000, depending on how long the mistake went unnoticed.
The size of the underpayment depends on your National Insurance history, marital status, and whether any entitlement reviews were ever conducted on your account.
How To Check If You’re Affected
If you suspect you could be one of the thousands affected by this error, you can take the following steps to investigate:
- Contact the DWP directly and request a review of your state pension.
- Gather any relevant information, such as your National Insurance number, marriage certificates, divorce documents, or death certificates of a spouse (if applicable).
- You can also consult the ‘Check your State Pension’ tool on GOV.UK, which provides a summary of your contributions and forecasted pension.
- If you’re unsure or unable to access the online tool, speaking to a pensions adviser or charity like Age UK can be extremely helpful.
Don’t wait for a letter that may never arrive. Proactively checking your entitlement could help you recover thousands of pounds.
What Are MPs Saying?
Several Members of Parliament have expressed deep concern over HMRC’s decision to stop contacting affected pensioners. Some have labelled it a “dereliction of duty”, especially when elderly citizens are left confused about their rights.
The Work and Pensions Committee is expected to question DWP and HMRC about the delays and communication failures. There are calls for more transparency and public campaigns to raise awareness, especially among the most vulnerable elderly population.
Is There A Deadline To Claim Underpaid Pension?
Technically, there is no fixed deadline to claim back underpaid state pension. However, acting sooner is always advisable. The longer you wait, the more difficult it may become to access old records or prove your eligibility.
Also, while the government has committed to repaying all genuine underpayments, there’s concern that people may miss out due to lack of awareness or insufficient documentation.
If you suspect something is wrong, don’t delay — initiate your claim or review as soon as possible.
Will Affected Pensioners Get Compensation?
In some cases, pensioners have not only received backdated payments but also interest on the underpaid amount. However, this is not guaranteed. The DWP reviews claims on a case-by-case basis. If the error was due to their mistake, they may add interest. But if the issue was due to incomplete records or missing documentation, compensation might not apply.
It’s essential to keep all communication and obtain a full breakdown of how any revised payment was calculated.
Why This Matters More Than Ever
The state pension is often the main or only source of income for retired individuals in the UK. With the cost of living rising steadily and inflation still hitting households, every pound counts. For those living on fixed incomes, even a small underpayment could mean struggling to pay bills or buy food.
By not informing pensioners, the government risks creating further financial hardship among people who deserve better.
Can You Help Others Affected?
If you believe a family member, neighbour, or someone in your community may be affected, encourage them to check their pension entitlement. Many older individuals may not use the internet or be aware of this issue. Talking about it, sharing news articles, or helping them make a phone call could make a significant difference in their lives.
Charities like Age UK, Independent Age, and Pension Wise are also urging people to spread awareness and support vulnerable pensioners.
Final Words
The decision by HMRC to stop sending letters regarding state pension underpayments has created confusion and frustration across the UK. Thousands of elderly people could miss out on money they are rightfully owed — not because they aren’t eligible, but because they don’t know about it.
If you’re approaching retirement age or already drawing your state pension, take action today. Don’t wait for someone to notify you. The information and tools are out there — and the sooner you start asking questions, the better your chances of getting what’s rightfully yours.
