Figures from the Department for Work and Pensions (DWP) show that about 10% of claimants for Pension Credit – a top-up for the poorest pensioners – did not get their full entitlement, compared to 8% the previous year. In total, the amount missed out on rose by £20m to £100m.
The figures are part of a data release showing fraud and error in the benefit system. In total, £9.5bn of benefits were overpaid, compared with £9.7bn the year before, and £1.2bn was underpaid, compared with £1.1bn the year before.
Rising DWP errors
Jon Greer, head of retirement policy at wealth management group Quilter, said the figures show how complex the pension system is, and highlighted that there had been a sharp rise in errors made by officials.
He said: “Overpayments due to administrative mistakes by the DWP tripled in value from £20m last year to £110m, a statistically significant increase driven by miscalculations on the additional components of the state pension.
“These elements, which sit on top of the basic state pension, are prone to error and highlight how even small administrative slips can snowball when dealing with such large sums.”
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Pensioners urged to check
Experts said pensioners claiming benefits should check the information they are providing to the DWP to ensure they get their entitlement.
Steve Lowe, communications head at Just Group, said the DWP is blaming claimants for not providing accurate information to the Government, particularly when financial assets reduce, a non-dependant moves out or income from private pensions falls.
He said: “It’s important to understand what changes in circumstances can impact the amount of benefit being paid because the system relies on accurate information.
“You could be eligible for more, but you also must guard against accidentally overclaiming and then having to repay the money later, which can cause serious hardship.”
He suggested people check the information they give periodically.
Related: Millions of under-pensioned Brits at risk of retirement poverty
