A pensioner has been awarded more than £77,000 by the DWP after it did not automatically boost her state pension once her husband had retired.
Tean Hatt, an IFA at Vizion Wealth, told FT Adviser how a new client [Mr B] had come to him for help with his pension planning.
While assisting Mr B, Hatt looked into the joint financial situation of the client and his wife.
His wife [Mrs B] was 73 and had retired in 2011 at age 60. She told Hatt she did not qualify for any state pension.
Hatt thought this was strange and decided to look into the matter further.
Mrs B had worked for her husband's company and was paid a low wage for NI purposes.
Rules were put in place by the DWP that meant married women over state pension age could claim an enhanced rate of basic state pension when their spouse or civil partner reached state pension age in cases where they had only a small basic state pension entitlement in their own right.
However, after a rule change, for any spouse reaching state pension age after March 17 2008, the uplift to a married woman’s pension should have happened automatically, without the need for a separate claim.
If this didn’t happen the married woman could subsequently claim the uplift, which could be backdated to the date her spouse or civil partner reached state pension age.
In this case, Mr B had retired in 2019 aged 65 but Mrs B said she had not received an uplift nor was she aware that she could claim for such a thing.
Hatt wrote to the DWP on behalf of Mrs B who replied stating that the automatic uplift was not awarded because of a ‘computer error’.
Mrs B was subsequently awarded the £130 per week which was backdated to when she retired at 60 by a lump sum of £77,393.
Alternatively, she had the option to have the extra state pension of £160 per week on top of her normal state pension of £130 per week, making Mrs.B’s state pension £290 per week in total.
'Biggest' DWP win
Hatt said this has been his “biggest win” for a client from the DWP in relation to a state pension.
“What past experience has taught me is to question women’s assumptions on what they may or may not be due from the state pension.
“If you see a low/no state pension in your fact finding do ask the follow up questions that may unearth a reason to contact the DWP.
“I find the most effective way is by writing a formal letter on behalf of the client to the DWP which forces it to investigate and answer according to the stated rules and procedures.
“I know it’s unscientific but I believe that over the years more than half of these enquiries have produced a positive result which is why I keep asking the questions and sending the letters,” he added.
