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.

Dept: Department for Work and Pensions Topics: PensionsWork, welfare and pensions nao.org.uk →

Recommendations

8 items
7 accepted 1 partially accepted 6 implemented 1 in progress
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