DWP Pension Back Payments Update: Who are eligible to get it?

The DWP confirmed that back payments of worth up to £12,000 should be delivered this month. The DWP will provide payments to those individuals who have missed out the cash that is owed to them just because of the Legal Entitlements and Administrative Practice (LEAP) issue.

The DWP has reviewed the underpaid cases and identified more than 119,050 pensioners who were underpaid, with an average pension back payment amounting to £11,905.

DWP Pension Back Payments Update

The DWP announced an update on its current efforts to provide state pension back payments recently, with the average qualifying individual owed at least £12,000.  The DWP has also committed that the back payments worth up to £12,000 should be completed this month.

The department of work and pension (DWP) is providing pension back payments to those who have been underpaid because of the Legal Entitlements and Administrative Practice (LEAP) issue.The qualifying individual can expect to get a maximum of £11,905.

It is anticipated that more than 119,050 pensioners have been identified as having underpaid their state pension back payment. According to the DWP payments have already been delivered to all married women and civil partnership (category BL), as well as those who are over 80 years of age (category D).

When will you get DWP pension back payments?

The DWP continues working on  pension back payments and has issued a fresh update about it recently. Benefit amount has been provided to all married women and individuals who are in a civil partnership (category BL) group and those who are over 80 years old (category D). 

According to the official announcement, the progress for the ‘widowed’ revised cases will proceed before the end of 2024. It means that for those individuals benefit payments should be processed over the next three weeks.

The DWP has made it clear that more than 119,050 pensioners who had been underpaid and are now receiving a bumper payment for what they lost. Individuals with insufficient National Insurance (NI) contributions to be eligible for any Basic State Pension may be eligible for a pension via their husband, spouse or civil partner’s NI contributions.

Who is Affected by the LEAP Issue?

There are only three categories of individuals who were affected by the Legal Entitlements and Administrative Practice (LEAP) issue. These categories are discussed below.

  • Category BL (Married or In Civil Partnership): This category includes those Individuals who are married or in a civil partnership group and already before 6 April, 2016 reached at the state age pension age limit  and those who are also qualify for a Category BL uplift on their spouse’s National Insurance (NI) contributions.
  • Category B (Widowed): Individuals who have been widowed and their state pension has not seen any increased amounts for which they are eligible to inherit from their late husband, spouse and civil partner.
  • Category D (Over 80 Years): Individuals who reach the 80 years of age and receive basic state pension that is worth around £85.00 in 2022/23. After fulfilling the required residency conditions, they may be eligible for Category D state pension of £101.55 weekly (weekly rate of 2024-25).

DWP Pension Back Underpaid Payment Details 

The department of work and pension (DWP) has announced plans to provide pension back payment to those who have been underpaid because of the LEAP issue.

As we know that there are three categories of individuals affected with LEAP issues.

The total number of underpaid reviewed cases, identified payments (that were made between January 2021 and September 2024), average arrears payments and total repaid amount of each category are provided below.

Married (Category BL)

  • Total number of reviewed cases: 321,142
  • Identified Underpayments: 45,907
  • Average arrears payment: £5,591
  • Total repaid amount: £250.6 million.

Widowed (Category B)

  • Total number of reviewed cases: 445,188
  • Identified Underpayments: 39,706
  • Average arrears payment: £11,905
  • Total repaid amount: £417.2 million.

Over 80 (Category D)

  • Total number of reviewed cases: 90,720
  • Identified Underpayments: 33,437
  • Average arrears payment: £2,202
  • Total repaid amount: £68.2 million.