Investigation into Underpaid State Pensions for Married Women: Ombudsman to Examine the Issue
In a long-standing issue that has affected thousands of women, the Parliamentary Ombudsman has launched a full investigation into seven cases of state pension underpayments for married women who retired before March 2008. This investigation comes following a campaign led by former Liberal Democrats' pensions minister, Steve Webb, who is now a partner at consulting firm LCP.
The investigation recognises a significant error in the National Insurance (NI) records of over 100,000 people, primarily women in their 60s and 70s. This error, dating back to 1978, has resulted in reduced state pensions for women who took time out of work, often for childcare or caring responsibilities.
Prior to 2008, married women who retired were eligible for an enhanced state pension upon their husbands' retirement. However, due to inadequate procedures and systems within the Department for Work and Pensions, many women were underpaid. The pension uplift was not automatic; women had to fill out a separate state pension form to receive it.
Women who discovered years later that they were underpaid were only eligible for backdated payments of 12 months. If compensation is recommended for all affected women, hundreds of millions of pounds could be involved.
The Department for Work and Pensions only provided the pension uplift to these women if they filled out a separate state pension form, and the payment was not automatic. Women could only receive the claim form if their husbands had checked a box to indicate they would send one. Consequently, many women who missed out on making the claim after their husband's retirement remained on the lower rate, potentially losing out on more than a decade's worth of state pension payments.
Despite public awareness and advocacy, there is no clear, detailed public update available from official government sources regarding the closure or final outcomes of the investigation or compensation process as of mid-2025. The HMRC National Insurance Manual had archived related "Special Cases: Married Women" content, indicating older procedures may have been superseded, but no new definitive guidance or resolution announcement is referenced.
Steve Webb has been advocating for justice for these women for over three years. He urges affected individuals to verify their entitlements proactively. The ongoing investigation aims to identify those affected and clarify their entitlements, but as of August 2025, there is no confirmed final resolution or government compensation scheme publicly reported.
[1] Source: BBC News (Date: TBD)
- The investigation into state pension underpayments, headed by the Parliamentary Ombudsman, targets financial mistakes related to personal finance, primarily affecting women, and requires attention from those receiving the government's personal-finance newsletter.
- Since the investigation's commencement, hundreds of millions of pounds in potential compensation could be distributed to the over 100,000 victims, raising important issues within the broader scope of personal finance and finance management.
