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State pension: DWP to check for fraud and error in payment – what this means for Britons

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State Pension payments can provide important support to individuals who are retired and who are eligible to receive the payment. The sum can help retired people who have built up a certain number of National Insurance contributions throughout their lifetime. The Government states, however, it is important to note a person may get less than the full state pension if they were contracted out before April 6, 2016.

The decision from the DWP to review state pension payments is a particularly momentous one.

This is because this will be the first time the state pension sum has been reviewed for error and fraud since 2005 to 2006.

Reviews to payments and benefits were temporarily suspended due to the pandemic back in early 2020.

However, they were restarted in July 2020 with a focus on Universal Credit taking place. 

The latest ‘Fraud and Error’ report was for the 2019/20 financial year and revealed some interesting facts about the state pension and payments generally.

State pension was discovered to be the payment with the highest expenditure from the DWP – with the Government paying out £98.8billion in 2019/20.

The report read: “The estimate of the total rate of underpayments in 2019 to 2020 was 1.1 percent, with the estimate of their monetary value being £2billion.”

Reviews of the state pension are currently taking place to resolve a major issue which has been highlighted recently.

Thousands of women who claimed the basic state pension – the older scheme – could be due back payments following an underpayment issue being identified.

In a written statement to Parliament, Guy Opperman MP, said: “We are committed to making sure that those people found to have been underpaid state pension receive the money they are rightly entitled to.

“We became aware of issues with State Pension underpayments in 2020 and we took immediate action to investigate the extent of the problem. This is an issue that dates back many years across successive governments. Rectifying these cases is a priority for the department and we will do it as quickly as possible.”



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