Source · National Audit Office

Investigation into underpayment of State Pension

Report examining the underpayment of state pension, setting out how this happened and what DWP is doing to rectify this.

Published: 22 Sep 2021 Recommendations: 8 Type: Value for Money NAO confirmed: 8 Department: Department for Work and Pensions
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

Recommendation 1

Addressee: Department for Work and Pensions · Source location: Page 10, paragraph 21, point d

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;

Response position: Accepted

Delivery: Implemented · Confirmed by NAO

Recommendation 2

Addressee: Department for Work and Pensions · Source location: Page 10, paragraph 21, point e

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

Response position: Accepted

Delivery: Implemented · Confirmed by NAO

Recommendation 3

Addressee: Department for Work and Pensions · Source location: Page 11, paragraph 21, point f

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.

Response position: Accepted

Delivery: Implemented · Confirmed by NAO

Recommendation 4

Addressee: Department for Work and Pensions · Source location: Page 11, paragraph 21, point g

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;

Response position: Accepted

Delivery: Implemented · Confirmed by NAO

Recommendation 5

Addressee: Department for Work and Pensions · Source location: Page 11, paragraph 21, point h

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

Response position: Accepted

Delivery: Implemented · Q1 2025-26 · Confirmed by NAO

Recommendation 6

Addressee: Department for Work and Pensions · Source location: Page 11, paragraph 21, point i

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.

Response position: Accepted

Delivery: In progress · Q4 2026-27 · Confirmed by NAO

Recommendation 7

Addressee: Department for Work and Pensions · Source location: Page 11, paragraph 21, point j

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

Response position: Accepted

Delivery: Implemented · Confirmed by NAO

Recommendation 8

Addressee: Department for Work and Pensions · Source location: Page 11, paragraph 21, point k

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.

Response position: Partially accepted

Delivery: No longer relevant · Confirmed by NAO