Thousands of women could be due ‘lottery-winning sums’ in pension payments

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Carole Davies was owed £61,000

Carole Davies was owed £61,000 (Picture: Carole Davies/BBC)

Thousands of women who have been getting as little as £1 a week for their pension could be owed sums equivalent to lottery wins, a former pensions minister has said.

Sir Steve Webb said he had recently helped women to claim backdated amounts they were entitled.

One woman was entitled to £56,000 in back pension, another to £33,000 and a third to more than £60,000.

Sir Steve, who is now a partner at consultants LCP (Lane Clark & Peacock), said they could be missed by data searches currently being carried out by the Department for Work and Pensions (DWP).

It is thought that as many as 5,000 women could be due a windfall.

He estimated that if if all these women claimed then the total could easily be a quarter of a billion pounds.

It is thought that as many as 5,000 women could be due a windfall

It is thought that as many as 5,000 women could be due a windfall (Picture: Getty)

Under a little-known rule, women in this specific group were allowed to claim back pension to before a 2008 rule change, which has prevented many other married women from making backdated claims.

Three main elements made up the old state pension system: a basic state pension, an earnings-related pension (also called Serps) and an older graduated retirement benefit (GRB), which ran from 1961 to 1975 and was a forerunner of Serps.

The women who qualify for this special concession are those with no basic pension but who are receiving a tiny amount of GRB.

They can make a backdated claim today all the way back to when their husband turned 65, Sir Steve said.

Carole Davies, 76, whose husband retired in 2005, said: ‘After four months of looking for answers from the DWP we enlisted the help of Sir Steve Webb and, to my amazement, the DWP have now confirmed all my due monies will come to me.

‘I would advise all women in my position to seek advice and push hard for everything they are due as it is their right.’

She found out earlier this year that she was owed £61,000 and entitled to £82.45 per week.

Having been a stay-at-home mum who only briefly worked in an admin role, she had not build up a state pension as she hadn’t paid enough in National Insurance, she told the BBC.

‘When I retired in 2003, my state pension was so low – 40p a week – I was told that it would be paid once a year,’ she told BBC Radio 5 Live.

She contacted the Department for Work and Pensions after watching a TV programme about pensions, but ‘they just didn’t seem to want to know’.

The backdated claims affect those who retired before April 6, 2016, when there were special provisions for married women.

In March, documents revealed in the Budget showed thousands of women who were underpaid the state pension were in line for top-ups, with the bill put at around £3 billion.

But Sir Steve said the group of 5,000 women were likely to be missed by the DWP’s data search – and they should contact the department as soon as possible to see if they were owed money.

He said: ‘It is incredible that there are thousands of women getting such tiny pensions, but even more incredible that many could potentially be entitled to tens of thousands in back payments.

‘It is as if they are sitting on unclaimed winning lottery tickets. It is very important that women on these very small pensions make contact with the DWP as soon as possible to see if they could be entitled to a windfall.’

A DWP spokesman said: ‘The action we are taking now will correct the historical underpayments that have been made by successive governments and anyone impacted will be contacted by us to ensure they receive all that they are owed.’

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