Thousands of married women getting just £1 per week in their
state pension
might owe a “small fortune” to the government
, as stated by a prominent pensions specialist.
According to former pensions minister Sir Steve Webb, up to 18,000 women may be
entitled to tens of thousands of pounds each
.
He said a “shocking” oversight by the Department for Work and Pensions (
DWP
) had left some older women
to languish on tiny sums in retirement
.
Webb, currently a partner at the financial services company Lane Clarke & Peacock (LCP), has assisted impacted women in securing pensions that are both current and long overdue.
Those impacted have additionally been paid retroactively by the DWP, with some women eligible for amounts exceeding £50,000.
It could be worth tens of thousands of pounds,” stated Webb. “For those who qualify, it’s like a king’s ransom—a considerable wealth.
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Last month, the DWP stated that they had addressed approximately 130,000 state pension underpayment cases, amounting to over £800 million.
Since Webb and others started uncovering significant mistakes in 2020
.
Webb urges the government to take further action to address the predicament of a cohort of elderly, married women who continue to receive sekurang-kurangnyaweekly payments via the “Graduated Retirement Benefit” scheme—often amounting to roughly £1 per week.
This little-known group – many of whom may have stayed at home and did not build up National Insurance (NI) contributions – have been receiving the paltry sums under old pension arrangements which ran until 1975.
Webb’s examination of DWP data reveals that there are still 18,520 women on GRB. They receive an average weekly payment of 93 pence.
Although not all may qualify for a current-state pension, individuals whose spouse has a UK state pension ought to be eligible for a married woman’s pension.
It amounts to 60 percent of their spouse’s pension, which equates to roughly £105 weekly, when their partner receives about £176 each week from the standard state pension.
These women might also receive a one-time payment from the government.
Since this is your initial application for a mendasar state pension, it can be retroactive until the time your husband stopped working,” explained Webb. “The sum involved could dramatically alter your financial situation.
“What’s astonishing is that certain individuals are getting merely ridicule-worthy sums [from GRB],” stated the pensions specialist regarding the challenges encountered by some women.
In certain instances, the amount was minimal, with payments occurring just once a year. Some couples manage to get by with little more than a single pension supporting both of them.
Various instances have been previously brought to attention by
The i Paper
, including
Carole Davies from Surrey found out in 2021 that she was due to receive £56,000.
by the Government.
She was previously earning just £1 per week from GRB. However, with Webb’s assistance, she started to receive her married woman’s state pension along with a substantial lump sum paid retroactively since her husband retired in 2005.
Bernie Weallans
,
from Brighton, received £20,000 in 2021
Following communication with Webb, approximately five years’ worth of payments will be required.
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Webb mentioned that due to the intricate changes in pension regulations over the years, it wasn’t evident how many of the 18,520 women under GRB would qualify for reimbursements.
A significant number now live abroad, with just 3,296 residing in the UK. According to Webb, women would qualify regardless of where they live globally—provided their spouse receives a UK state pension.
But the pension expert said those who have moved abroad were more likely to have married non-British citizens.
Webb urged the DWP to contact everyone receiving GRB to verify if they qualify for a married woman’s pension.
It’s such a limited group, and the sums they stand to miss out on are enormous, that suggesting the government reaches out to each of them with an explanation of their potential eligibility doesn’t seem unreasonable.
Rachel Vahey, the head of public policy at investment firm AJ Bell, similarly called for the government to take initiative in reaching out to women who might be entitled to substantial sums of money.
Sir Steve’s efforts on specific groups are truly crucial. It would be ideal if the DWP could collaborate with the latest insights provided by the pensions sector to pinpoint those who still require assistance. Ensuring individuals receive the funds owed to them should be our priority.
A representative from the Department for Work and Pensions stated that due to varying personal situations, “not all individuals will qualify for receiving a state pension or having their state pension increased.”
They included: “Individuals who are married or in a civil partnership and have attained state pension age prior to April 6, 2016, might qualify for receiving a state pension or an enhancement of their current state pension, which would be calculated according to their spouse’s or domestic partner’s National Insurance contributions after the partner reaches state pension age.”