Department for Work and Pensions (DWP) attempts to address historic underpayments of state pensions due to the Home Responsibilities Protection scheme have been met with considerable criticism, as new revelations indicate that only a small fraction of those owed money have received what they are due.
The DWP has acknowledged that despite sending letters to 370,000 potential claimants, only 12,379 cases of arrears have been identified, amounting to just £104 million being paid out—a mere fraction of the £1.1 billion initially estimated for redress.
Home Responsibilities Protection: another historic mess
The fundamental issue at the heart of this failure lies in the complexity of the Home Responsibilities Protection scheme, which ran from 1986 to 2010. Designed to safeguard the National Insurance contributions of those who took time off work to care for children or dependents, it disproportionately affected women, many of whom found themselves not only grappling with financial uncertainty but also navigating a convoluted administrative process.
The DWP’s own findings indicate that many older people lack the digital skills necessary to engage with the “digital by default” application process, a requirement that has hindered those in need from claiming what is rightfully theirs.
Steve Webb, former pensions minister and a leading advocate for pensioners’ rights, has been vocally critical of the government’s approach. He remarked that it is disheartening that efforts to identify and rectify underpayments have largely failed to engage those who desperately need assistance.
“Writing letters to older people which guide them towards a two-stage online process was always going to have a low success rate,” Webb stated, highlighting the governmental oversight of the challenges faced by older demographics in a digital age.
The DWP response has been inadequate, at best
Compounding this issue is the widespread scepticism surrounding such correspondence; many recipients mistook government letters for scams, while others were unsure of their eligibility or worried that it was “too late” to modify their situations.
This lack of trust is particularly relevant in a society increasingly attuned to online fraud, which older people are more vulnerable to. Furthermore, confusion surrounding the connection between past child benefit claims and current state pension entitlements has left many unaware that they are owed back payments averaging £7,800 per person.
This inadequate outreach has resulted in an expanding backlog of unaddressed cases. Recent reports indicate that the total cumulative underpayments could exceed £3 billion, affecting over 200,000 people.
With an increasing underpayment rate, now at around 6% of state pension claims, urgent action is required not only to rectify these payment errors but also to overhaul the systems that perpetuated them. Historical administrative errors have catalysed this ongoing issue; the DWP has been performing a review of nearly 878,000 cases since January 2021, yet the full resolution might not be reached until 2027.
While the government has initiated a correction exercise, similar initiatives in the past have failed to yield sustainable improvements. The national pension framework must be re-evaluated to ensure such oversights are not repeated.
Chaos for older women
Parliament’s Public Account Public Committee has examined the DWP’s handling of pension records, identifying systemic flaws as a critical barrier to the effective resolution of underpayments. It has become glaringly evident that more robust safeguards and clearer communication are essential to protect vulnerable groups—especially women, who have historically borne the brunt of these administrative failures.
In light of these circumstances, Fleur Iannazzo, a money wellbeing expert, has encouraged potentially affected individuals to take immediate action. “Anyone who thinks they might’ve been underpaid their state pension due to missing Home Responsibilities Protection years should act now,” she advised.
Support is available through the DWP’s helpline, but it is crucial for eligible pensioners to consult trusted friends or relatives to navigate the complexities of the application process.
The Home Responsibilities Protection gap is not just a bureaucratic error; it represents years of financial struggle for thousands of individuals who trusted a system meant to safeguard their livelihoods. As this situation unfolds, the call for the DWP to reform its practices grows louder. It is an urgent reminder that the welfare of minoritised people should always take precedence over bureaucratic convenience, ensuring that every individual receives not just their due entitlements but the dignity that comes with it.
Featured image via the Canary
