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UK Pensioners Owed £7859 Due to DWP & HMRC Error : Thousands of pensioners across the UK could be owed up to £7,859 due to historic mistakes made by HMRC and the Department for Work and Pensions (DWP). If you’re receiving a state pension or have recently noticed a change in your payments or tax code, this could directly affect you or someone you know.
Here’s everything you need to know about what went wrong, who’s eligible, and how to claim the money you’re rightfully owed.
What Went Wrong?
This issue stems from errors in data sharing and income calculations between the DWP and HMRC two departments responsible for managing pensions and tax codes.
In many cases, outdated or incorrect information led to underpayments of pensions. Common causes included:
- Incorrect tax codes
- Missing income details
- Delays in processing changes
- Confusion between state and private pension income
A recent government review found that some pensioners were underpaid by as much as £7,859. This money is now claimable, but you must act to receive it.
Who Could Be Affected?
Not every pensioner will be affected, but you may be eligible if:
- You receive the state pension or pension credit
- You also have income from private pensions or savings
- You’ve received letters from DWP or HMRC about payment adjustments
- You’ve noticed lower-than-expected pension payments
- Your tax code has recently changed
Even if you’re unsure, it’s worth checking many pensioners are missing out simply because they don’t know they qualify.
How to Check If You’re Owed Money
Here’s a step-by-step guide to checking if you’re affected:
- Review Your Pension Statements
Look for irregularities, unexplained deductions, or sudden drops in income. - Check Your Tax Code
You can view your tax code on your payslip or via your Personal Tax Account on GOV.UK. An incorrect code could mean underpayments. - Contact DWP or HMRC
Use your National Insurance number and pension reference when contacting them for quicker service. - Request a Pension Review
You can ask DWP for a review of your state pension entitlements to check if your payments were calculated correctly.
How to Claim Your Money
If it turns out you’re owed money, here’s how to claim it:
- Fill in the required forms – DWP or HMRC will guide you based on your situation.
- Submit proof – Include pension statements, income details, and tax code letters.
- Keep records – Track every email, letter, or phone call for your reference.
- Get help if needed – Support is available (see below).
The process is often straightforward, especially when you have the right documents.
What Happens After You Claim?
Once your case is reviewed:
- You may receive a lump sum payment for the total amount owed.
- Your future pension payments could be adjusted.
- If you qualify for other benefits (like Pension Credit or Housing Benefit), they may be updated as well.
Tips to Avoid Future Pension Errors
To protect yourself from future issues:
- Keep all pension and tax documents safe
- Regularly check your tax code
- Update DWP and HMRC if your income changes
- Log in to your online pension or tax account to monitor your records
- Seek professional advice if you’re ever unsure
Where to Get Help
If the process feels overwhelming, there are organisations that can help you for free:
- Citizens Advice – Independent guidance on your rights
- Age UK – Specialises in pension advice and support
- HMRC Helpline – For tax code and income-related queries
- DWP Pension Service – For reviewing state pension payments
Don’t hesitate to reach out support is just a phone call away.
Final Thoughts
It’s deeply concerning that pensioners are being underpaid due to government errors but there’s good news: you can claim back what you’re owed. Whether it’s £500 or £7,859, it’s your money, and you deserve it.
