Source · National Audit Office
Investigation into underpayment of State Pension
Published: 22 Sep 2021
Recommendations: 8
Type: Value for Money
NAO confirmed: 8
Department: Department for Work and Pensions
Report examining the underpayment of state pension, setting out how this happened and what DWP is doing to rectify this.
Recommendations
| Rec | Recommendation | Addressee | Acceptance | Implementation |
|---|---|---|---|---|
| 1 |
We recommend that the Department:
Improves prompt redress and increases transparency over the LEAP exercise
d) regularly updates Parliament on the progress of its LEAP exercises, including the scope of the reviews, which cases are and are not being reviewed, and
what has been found;
Ref Page 10, paragraph 21, point d
|
Department for Work and Pensions | Accepted | Implemented ✓ NAO |
| 2 |
e) publishes information on the LEAP exercise, including on what guidance is available for pensioners who are concerned they may have been affected by these errors, to help avoid people who are unaffected unnecessarily contacting the Department, and to help those that have been affected to understand the process and implications; and
Ref Page 10, paragraph 21, point e
|
Department for Work and Pensions | Accepted | Implemented ✓ NAO |
| 3 |
f) develops a process by which the beneficiary or executors of estates can find out if the LEAP exercise has identified they are due a payment of arrears, to help tackle cases where the Department cannot trace the next of kin of deceased pensioners affected.
Ref Page 11, paragraph 21, point f
|
Department for Work and Pensions | Accepted | Implemented ✓ NAO |
| 4 |
Strengthens its controls and quality assurance processes
g) strengthens the standard controls over processing State Pension claims. For example, it should consider whether it would be value for money to either make it routine to check an existing partner’s claim when the second person in a couple makes their claim, or to regularly scan for and check cases at risk of being underpaid;
Ref Page 11, paragraph 21, point g
|
Department for Work and Pensions | Accepted | Implemented ✓ NAO |
| 5 |
h) improves training on and management of complex State Pension cases. For example, for the duration of the LEAP exercise it should regularly consider what additional training, guidance and case studies of complex cases its State Pension case workers need, in the light of its evolving learning; and
Ref Page 11, paragraph 21, point h
· Implemented Q1 2025-26
|
Department for Work and Pensions | Accepted | Implemented ✓ NAO |
| 6 |
i) considers, in the light of its on-going learning from the LEAP exercise, whether more State Pension processes could be automated, cost-effectively, to obtain information from its existing systems and calculate awards more effectively.
Ref Page 11, paragraph 21, point i
· Implemented Q4 2026-27
|
Department for Work and Pensions | Accepted | In progress ✓ NAO |
| 7 |
Improve its detection of the systemic causes of underpayments across the Department
j) accelerates its response to our previous recommendation to record and produce management information on detected underpayments; and
Ref Page 11, paragraph 21, point j
|
Department for Work and Pensions | Accepted | Implemented ✓ NAO |
| 8 |
k) routinely reviews detected underpayments to assess whether they have a systemic cause that could give an early warning that other cases are similarly affected.
Ref Page 11, paragraph 21, point k
|
Department for Work and Pensions | Partially accepted | Not relevant ✓ NAO |