In one of the most significant welfare corrections in recent years, the UK’s Department for Work and Pensions (DWP) has admitted to owing £500 million in back payments to tens of thousands of citizens.
Approximately 80,000 people across the country could be due refunds averaging £6,250—some potentially as high as £12,000.
The error primarily affects married women, divorced women, widows, and individuals over 80, who may not have received the full State Pension they were entitled to. The DWP is now working to identify, notify, and repay those affected.
This article outlines who is eligible, how to check if you’re owed money, and what steps to take next.
Who Is Owed a Share of the £500 Million Back Pay?
According to official statements, the back pay stems from historical miscalculations in State Pension entitlements, primarily due to outdated rules and administrative oversights. The issue disproportionately affects:
- Married women who did not receive the correct pension based on their husband’s National Insurance (NI) contributions.
- Widows or widowers who were not upgraded after their partner’s death.
- Divorced women who missed pension uplifts tied to their ex-spouse’s NI record.
- Over-80s who were due automatic upgrades but did not receive them.
Eligibility Criteria for DWP Back Pay
To qualify for the DWP’s back payments, individuals must meet specific criteria based on age, marital status, and State Pension history.
| Group | Eligibility Details |
|---|---|
| Married Women | Must have reached State Pension age before March 2008 and may be eligible for 60% of their spouse’s NI contribution-based pension. |
| Widows/Widowers | May have missed inheritance-related pension increases after a partner’s death. |
| Divorced Women | Pension may not have been correctly recalculated based on ex-husband’s NI contributions. |
| People Over 80 | If already receiving a pension when they turned 80, they may be eligible for an automatic upgrade. |
Note: The DWP advises people to review their pension history and contact them if they suspect underpayment.
Estimated Payouts and Affected Numbers
While 80,000+ individuals have been identified so far, as many as 2,30,000 people could eventually be eligible for back pay, with payments ranging between £2,245 and £12,383 per person.
| Group Affected | Estimated Average Payout |
|---|---|
| Married Women | £6,250 – £12,000 |
| Widows/Widowers | £5,000 – £10,000 |
| Over-80s | £2,245 – £6,000 |
| PIP (Disability Claims)** | £5,000 – £12,000 |
Some PIP claimants may also receive back pay due to historical miscalculations after a change in how disability-related support was assessed.
Back Pay Timeline and Payment Dates
According to the latest updates, the DWP plans to finalize its review and publish a full progress report by the end of May 2025. However, official payment dates have not been disclosed yet.
| Event | Timeline |
|---|---|
| Identification of Claims | Ongoing |
| Review Completion | By end of May 2025 |
| Payment Distribution (Expected) | Starting Summer 2025 |
| Notification Letters Sent | Rolling basis |
The DWP has already started contacting those eligible by letter. Individuals can also use online tools to check if they’re owed money.
How to Check If You’re Owed Money
Here’s how to determine if you’re eligible for a share of the £500 million:
1. Use the Online Back Pay Calculator
Some platforms offer calculators that estimate potential back pay based on your NI and pension history.
2. Review Your State Pension
Check your State Pension statement via your GOV.UK account. Compare your payments against entitlements.
3. Contact DWP Directly
If you believe you were underpaid, contact the DWP to request a formal review.
How the Back Pay Is Calculated
The back pay amount is based on the difference between the pension you should have received and what was actually paid out, multiplied over the period of underpayment.
For example:
- If you were underpaid by £50 per month for 8 years, that’s £4,800 in total, plus possible interest.
The DWP’s acknowledgement of £500 million in back payments marks a critical moment in ensuring pension fairness across the UK. With tens of thousands potentially affected, this correction brings long-awaited justice to those who were unintentionally shortchanged.
If you believe you or a loved one may be owed money, act now—review your pension status, contact the DWP if necessary, and ensure your bank and contact details are up to date.
As the government continues working through this massive repayment effort, staying informed could mean reclaiming thousands in missed entitlements.
FAQs
How do I know if I’m owed DWP back pay?
If you fall under categories like married women, widows, or those over 80, and you suspect underpayment, review your pension details online or contact DWP for a review.
When will the DWP start issuing the back pay?
The DWP plans to complete its review by May 2025, with payments expected to begin in summer 2025. Those affected will be contacted directly.
Do I need to apply to receive my back payment?
In most cases, no application is needed. However, if you suspect an error and have not been contacted, it’s advisable to proactively reach out to DWP.