A group of women are challenging a state pension underpayment decisio(Image: Getty Images/iStockphoto)

'Major milestone' for thousands who missed out on £10,000 state pension payments

The Parliamentary Ombudsman has confirmed it will launch a full investigation into the issue, which could see the Government pay out hundreds of millions of pounds

by · NottinghamshireLive

An update from campaigners has brought hope to tens of thousands of married women who could have missed out on over a decade of increased state pension payments, with potential amounts exceeding £10,000 for some. The controversy revolves around married women on the basic state pension who did not receive payment boosts according to their husband's National Insurance history if they reached pension age before April 2016.

These payments were meant to be 60% of their husband's entitlement, yet many did not know it required an application – unless the husband turned 65 after March 17, 2008, in which case it was automatic. Claims can now only get backdated payments for 12 months.

Women are taking this issue to the Parliamentary Ombudsman, and this week, Sir Steve Webb, former pensions minister and current partner at LCP, announced a "major milestone": a full investigation by the Ombudsman. This campaign, if successful, might mean the Government owes hundreds of millions of pounds in state pension arrears, impacting potentially more than 100,000 people.

Mr Webb has encountered women receiving as little as 25% of the full basic pension, with some potentially losing over £10,000 since their husband's retirement. He was appalled to discover that the method for claiming an increase was a checkbox on the husband's state pension form.

This could result in missed higher payments if the box was not ticked, the Department for Work and Pensions (DWP) issued only one form, or the husband did not share the second form. An investigation will review seven "lead cases" presented to the Ombudsman, reports the Mirror.

A positive ruling might include thousands of women who passed away without the correct pension. Mr Webb commented: "This is a major milestone in a long-running campaign for justice for thousands of married women. In my view these women fell victim to a fundamentally sexist and archaic system which relied largely on married men ticking boxes and passing on claim forms to their wives."

"The women I have spoken to are all intelligent people who do not ignore official correspondence and who would clearly have claimed their uplifted pension if they had realised a second claim was needed once their husband retired. The fact that they did not know this was needed indicates a system which let them down and has cost them in many cases thousands of pounds through no fault of their own."

The Department for Work and Pensions (DWP) has stated: "We are committed to ensuring pensioners have the dignity and support they deserve in retirement and will cooperate fully with the Ombudsman's investigation."