The Department for Work and Pensions (DWP) has issued a serious warning to state pensioners in the UK after uncovering widespread underpayments totalling £835 million.
This major issue, referred to as the £230 DWP Payment Warning, has impacted over 230,000 people—most of them elderly women—due to long-standing errors in the pension system.
If you or someone you know receives a state pension, it’s worth checking whether you might be owed money. Here’s everything you need to know.
Table of Contents
Overview
The £230 DWP Payment Warning is linked to a correction project that started in 2021, targeting pension records that were not updated properly over the years.
Many affected pensioners missed out on higher payments because their status as married, widowed, or over the age of 80 wasn’t reflected correctly in DWP systems.
The result? Thousands received less money than they were legally entitled to—sometimes for decades.
Figures
| Key Details | Figures (2025) |
|---|---|
| Pensioners affected | Around 237,000 |
| Total amount owed | £835 million |
| Average repayment (married women) | £5,173 |
| Average repayment (widows) | £12,383 |
| Average repayment (over 80s, Cat D) | £2,192 |
| Repaid so far | £571 million to 150,000+ |
These numbers show the scale of the issue and why the DWP is facing growing pressure to act quickly and communicate clearly.
Who Was Affected
The majority of underpayments involve:
- Married women whose pensions were not increased when their husbands retired
- Widows who did not receive their full survivor pension after their spouse passed away
- Pensioners over age 80 on the Category D pension who were not upgraded correctly
These groups often had fewer National Insurance contributions due to caregiving roles and relied on spousal benefits, which were overlooked or not applied.
Why It Happened
The root of the issue lies in the legacy pension system before April 2016. At that time, many state pension calculations relied on manual updates triggered by life events like a spouse retiring or passing away.
When those updates weren’t entered—often due to outdated IT systems or clerical errors—recipients continued receiving lower payments without knowing it.
In some cases, pensioners have been shortchanged for over a decade.
What the DWP Is Doing
To fix this, the DWP launched a full review in January 2021. So far, more than £571 million has been repaid to over 150,000 pensioners, but thousands more are still waiting.
The department says it is working through the cases systematically, but due to the complexity and size of the task, progress is slow. Many people may still be unaware they are affected.
How to Check If You’re Owed
Here’s how you can find out if you or a loved one is eligible for a back payment:
- Contact the Pension Service through GOV.UK or by phone
- Use the State Pension Forecast Tool to compare your forecasted and actual payments
- Check your National Insurance contributions using your HMRC online account
- Ask for a pension review if you believe an error has occurred
- For deceased pensioners, the executor or family may be entitled to the repayment
Charities like Age UK and Pension Wise can also assist with the process.
Public Reaction
This issue has triggered major concern among campaigners, with former pensions minister Sir Steve Webb calling it one of the worst pension failures in history.
Campaigners are pushing for:
- Faster and more transparent repayment reviews
- Better communication with those potentially affected
- System upgrades to prevent future errors
Many say the government must do more to inform pensioners and speed up the correction process.
What You Should Do Now
Even if the DWP is reviewing cases automatically, taking action can help speed things up. Here’s what you can do:
- Review your pension history if you’re a woman, widow, or over 80
- Help older relatives or friends check their records
- Reach out to trusted financial advice services or charities if you’re unsure where to begin
FAQs
What is the £230 DWP Payment Warning?
It refers to underpayments affecting over 230,000 pensioners in the UK.
Who is most likely affected by the error?
Married women, widows, and over-80s on Category D pensions.
How much could I be owed?
Amounts vary, with some averaging between £2,000 and £12,000.
Do I need to apply for repayment?
Most cases are automatic, but you can request a review to be sure.
How do I contact the Pension Service?
Visit GOV.UK or call the Pension Service to request a review.
