Source · Select Committees · Public Accounts Committee
Recommendation 27
27
Accepted
In January 2021 the Department launched an exercise to review around 400,000 cases ‘at risk’...
Recommendation
In January 2021 the Department launched an exercise to review around 400,000 cases ‘at risk’ of underpayment to confirm the extent of the issue and reimburse affected pensioners. The Department wrote to us in May 2022 explaining that it was on track to conclude the review of the original 400,000 cases by the end of 2023.52 But it noted in its most recent Annual Report and Accounts that it was planning on the basis that completion would likely be delayed to the end of 2024 because of the potentially affected pensioners newly identified during 2021–22. The NAO reported that between January 2021 and March 2022, the Department reviewed an average of 4,000 cases per month, but 48 Committee of Public Accounts, Underpayments of the State Pension, Thirty-Third Report of Session 2021–22, HC 654, 12 January 2022 49 DWP ARA 2021–22, pages 234, 291 50 Qq 85, 91 51 DWP Follow up Correspondence to the Public Accounts Committee Hearing on DWP Annual Report & Accounts 2021–22 on 20 July, 6 September 2022 52 Correspondence from Peter Schofield CB, Permanent Secretary, Department for Work and Pensions, Re: State Pension Underpayments, 16 May 2022 The Department for Work and Pensions’ Accounts 2021–22 – Fraud and error in the benefits system 19 it will need to review around 19,000 cases per month going forward to achieve its target deadline.53 We asked the Department whether it genuinely believed that a 400% increase in workload would be achievable. It told us it was confident it could achieve its 2024 deadline by boosting staffing from 500 to 1,500, increasing the speed at which cases were reviewed, and deploying automation tools, which were still under development. We questioned the Department on whether the additional 1,000 staff would need to be compensated for in the wider headcount reductions. It explained that it did not expect this would be an issue because these reductions were planned for March 2025, and therefore would not affect its 2024 target completion date. We observed
Government Response Summary
The government agrees and states that it already provides a range of awareness materials to assist those who may fall into the cohorts affected by the State Pension LEAP exercise, including information on Gov.UK and leaflets with annual uprating letters. They have also provided a more direct route for those enquiring about underpaid State Pension in respect of a deceased customer.
Government Response
Accepted
HM Government
Accepted
6b. PAC recommendation: The department should explain how it will update its communications to reassure pensioners that they will be meaningfully compensated. 6.8 The government agrees with the Committee’s recommendation. Recommendation implemented 6.9 The department already provides a range of awareness materials to assist those who may fall into the cohorts affected by the State Pension LEAP exercise. 6.10 There is information on Gov.UK about deriving (Category BL) State Pension, inheriting State Pension through spouse or civil partner and Category D (over age 80) State Pension. In 2021, the Category BL and inheritance content was revised, making it easier to find, and to emphasise further that some individuals must make a claim and how they can do this. 6.11 The department requires individuals to report certain changes of circumstance to ensure that they receive the correct amount of State Pension. This applies to people who have become divorced or whose civil partnership is dissolved. There is information about this on Gov.uk, and importantly the department also includes information about this in the leaflet that supports annual uprating letters that are sent out each year. 6.12 The department has now also provided a more direct route for those enquiring about underpaid State Pension in respect of a deceased customer. Guidance on this went live on Gov.UK on 8 July 2022 and has already received 24,593 enquiries (November 2022). In line with our prioritisation of schedule, these enquiries will be reviewed once all cases of those who are still alive have been actioned. 6.13 The department has committed to considering the feasibility of doing more to understand the effectiveness of our communications on this issue.