Number of pensioners hurt by DWP legacy system error actually 65,000
The UK's government has upped its estimate of the number of people hit by a state pension underpayment related to errors caused by a complex mesh of legacy systems dating back to the 1980s.[PDF], the Department for Work and Pensions said 165,000 pensioners were underpaid a total of £1.17 billion due to these errors, although it said the final underpayment figure could range from £957 million to £1.35 billion .
DWP initially estimated that around 132,000 pensioners had been underpaid some £1.0 billion in a scandal that hit widowed women claiming benefits accrued by their deceased husbands.[PDF] on the DWP accounts said the department had reviewed 263,000 of the 678,000 cases potentially affected. In its 2021-22 report, the DWP said the number of people affected might be as high as 237,000.
"Pension caseworkers must review information across at least three systems, understand which of the State Pension rules apply to each claim, and then accurately interpret them in order to assess a pensioner's eligibility. These rules are only fully understood by a small group of specialists," the NAO said.
The DWP introduced the Pension Service Computer System in 1988 before the system was fully rolled out in July 1991. It was said to be one of the first Virtual Machine Environment mainframe computers to be installed by central government, supplied by ICL Limited, which was later bought by Fujitsu. In January 2022, Parliament's spending watchdog said caseworkers needed to use the PSCS and three other IT systems in order to access all relevant pensioner details.
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