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The £736 Million Scandal: 5 Key Facts On The State Pension Boost For 400,000 People (Update December 2025)

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The Department for Work and Pensions (DWP) is currently undertaking one of the largest correction exercises in its history, impacting hundreds of thousands of pensioners who were systematically underpaid their State Pension for years. This massive administrative failure, which has already seen over £736 million paid out in arrears, affects an estimated 400,000 people, primarily women, who are now due a significant financial boost.

As of December 2025, the DWP's State Pension Underpayment Correction Exercise, known as LEAP (Legal Entitlements Administrative Practice), is ongoing, with a new focus on a separate, but equally critical, error involving missing National Insurance (NI) credits for parents and carers. This detailed guide breaks down the latest figures, who is affected, and how you can check if you are owed a life-changing back payment.

The DWP State Pension Underpayment Scandal: A Complete Overview

The State Pension underpayment issue stems from historic errors in the DWP’s records and processes, specifically relating to the Basic State Pension rules that were in place before the New State Pension was introduced in April 2016. The most significant errors relate to the failure to automatically uplift the pensions of specific groups of people, often married women, once their husbands retired, or when they became widowed or turned 80.

The DWP launched the administrative exercise to rectify these errors in January 2021. The sheer scale of the task is immense, with initial estimates suggesting approximately 400,000 cases needed to be reviewed. The total amount owed across all categories is projected to be well over £1 billion by the time the exercise is complete.

The correction process has been divided into various categories, with progress continually monitored and updated by the government and the National Audit Office (NAO). The good news is that for many, this correction has resulted in a substantial lump sum payment and a permanently higher weekly pension.

Latest Figures and Progress of the LEAP Exercise (As of September 2024)

The DWP provides regular updates on the progress of the LEAP exercise, and the latest figures highlight the significant financial impact of the underpayments. The correction exercise is a complex, multi-year project, but the rate of payments is steadily increasing.

  • Total Underpayments Identified: As of September 2024, the DWP had identified 119,050 underpayments across the main categories.
  • Total Arrears Paid: The total amount paid out in arrears to affected individuals reached £736 million.
  • Average Back Payment: While the average payment varies significantly by category, many individuals are receiving lump sums in the thousands of pounds. Previous reports have indicated some payments reaching up to £7,900 or more.
  • Correction Timeline: The DWP aims to complete the main LEAP correction exercise by the end of 2024, though work to address the newly identified Home Responsibilities Protection (HRP) errors is expected to continue well into 2025.

The DWP is proactively contacting those affected, so pensioners do not need to take action if their case falls into one of the main LEAP categories. However, due to the complexity and the ongoing nature of the correction, many experts recommend checking your own entitlement if you believe you may be owed money.

Who is Eligible for the State Pension Boost? The Three Main Categories

The LEAP correction exercise focuses on three primary groups who were most likely to have been underpaid under the old State Pension system. If you fall into one of these categories and reached State Pension age before April 6, 2016, you should be aware of your potential entitlement.

1. Married Women (Category BL)

This is the largest group affected. Under the old rules, a married woman was entitled to a Basic State Pension of 60% of her husband’s entitlement once he retired, provided her own NI contributions did not already entitle her to a full pension. The error occurred when this uplift was not automatically applied by the DWP.

  • Key Eligibility: Married women whose husbands reached State Pension age before 6 April 2016.
  • Action: The DWP is reviewing these cases automatically. If your husband has died, you may be entitled to a higher rate based on his contributions.

2. Widows and Widowers (Category BL and PW)

Many women were underpaid because they did not have their State Pension automatically reviewed and increased following their husband's death. This often relates to inheriting a portion of their spouse’s Basic State Pension or inheriting additional State Pension (SERPS/S2P).

  • Key Eligibility: Individuals whose spouse died after reaching State Pension age, or those who were receiving a reduced pension before their spouse died.
  • Action: The DWP is proactively reviewing these cases. If you believe your pension did not increase after your spouse's death, you should contact the Pension Service.

3. Over 80s (Category BL)

This group includes people who were receiving a low or no State Pension when they turned 80. Under the rules, all residents aged 80 or over are entitled to a non-contributory Basic State Pension, provided they meet certain residency requirements. The DWP failed to award this pension automatically in many cases.

  • Key Eligibility: Anyone aged 80 or over who is receiving less than the full Basic State Pension amount and meets the residency criteria.
  • Action: These cases are part of the automatic LEAP review.

The New Crisis: Home Responsibilities Protection (HRP) Errors

A separate, but equally critical, error has been identified and is now a major focus of the correction exercise. This involves the failure to correctly record Home Responsibilities Protection (HRP) on National Insurance (NI) records. HRP was a scheme that ran from 1978 to 2010 to help protect the State Pension entitlement of parents and carers who stayed at home.

What is Home Responsibilities Protection (HRP)?

HRP reduced the number of qualifying NI years a person needed to get the full Basic State Pension. It was awarded to those who claimed Child Benefit (CB) for a child under 16, or who were caring for a sick or disabled person. Crucially, the issue is that the DWP and HMRC failed to correctly transfer the HRP data onto the NI records for many people.

This error means that many parents, predominantly mothers, who claimed Child Benefit between 1978 and 2010, have gaps in their NI record, leading to a significantly lower State Pension.

The HRP Correction Exercise: What You Need to Know

The DWP and HMRC are working together to address this historic oversight. The scale of the HRP error is vast, with the correction exercise projected to continue until late 2025.

  • Who is Affected? Parents and carers, particularly mothers who claimed Child Benefit between 1978 and 2010.
  • Financial Impact: The DWP has already identified over 12,000 HRP underpayments between January and March 2024 alone, totalling around £104 million in arrears.
  • Action Required: Unlike the main LEAP categories, the HRP correction may require action from the individual. If you claimed Child Benefit during the HRP period (1978-2010) and did not include your NI number on the claim, you may need to contact HMRC to correct your NI record.

It is vital for anyone who has raised a family or acted as a carer during this period to check their NI record via the government's online portal. Correcting this record could lead to a substantial boost in your State Pension and a large back payment.

How to Check Your State Pension Entitlement and Claim Back Payments

While the DWP is automatically reviewing the main LEAP cases, the complexity of the HRP issue and the sheer volume of cases mean that proactively checking your situation is the safest approach to ensure you receive the money you are owed.

1. Use the Government's State Pension Forecast Tool: The first step is to check your current State Pension forecast and your National Insurance record online via the official government website. This will show you if you have any gaps in your contributions or if your HRP is missing.

2. Contact the Pension Service: If you are a married woman, widow, or over 80 and believe your State Pension is too low, you should contact the DWP’s Pension Service directly. They can review your case and confirm if you are part of the LEAP correction exercise.

3. Correct Your HRP Record: If you claimed Child Benefit between 1978 and 2010, and your NI record doesn't show the correct number of qualifying years, you should contact HMRC to submit a request for your HRP to be added. This is a crucial step for parents who may be missing out on thousands in arrears.

The ongoing correction exercise is a long-overdue rectification of a systemic failure. For the 400,000 people affected, this State Pension boost is not a windfall, but the rightful money they have been owed for years, finally putting their retirement finances back on track.

The £736 Million Scandal: 5 Key Facts on the State Pension Boost for 400,000 People (Update December 2025)
state pension boost for 400000 people
state pension boost for 400000 people

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