Human error responsible for £1bn short-changing of pensioners

A new report has found that years of human errors are to blame for over £1 billion in state pensions not being paid.

The report, released today by the House of Commons public accounts committee and the national audit office, concluded that 134,000 mostly female pensioners were underpaid.

The report concluded that most errors occurred due to the complexity of state pension rules, and outdated computer systems meaning that many tasks were still required to be manually completed.

A review is taking place to trace people owed money, however, 40,000 of the affected women have already died.

In light of the findings, Meg Hillier chair of the committee said: “This is not the first widespread error we have seen in the DWP in recent years. Correcting these errors comes at great cost to the taxpayer.”

The problem relates to the previous pension system under which married women with a poor pension could claim a 60% state pension based on their husband’s history of tax contributions.

The report also said that numerous pensioners who contacted the DWP may have been erroneously informed that their payments were correct.

It also found the department has no process of assessing whether individual complaints could be related to a wider error.

The report comes at a time when the department faces increased welfare claims as a result of pandemic job losses, as well as a backlog in state pension applications.

SNP MP David Linden described the scandal as a “catastrophic blunder”.

Labour MP Kim Johnson also criticised the situation, saying that payment to those impacted must be “full and fast”.