Thousands could be owed money from the DWP following error (2025)

The Department for Work and Pensions (DWP) could owe thousands of Brits a cash payout after new State Pension issues were identified by the Parliamentary and Health Service Ombudsman (PHSO)

Thousands of seniors could be in line for compensation from the Department for Work and Pensions (DWP), stemming from the findings of a Parliamentary and Health Service Ombudsman (PHSO) probe.

It's crucial to note that this specific investigation by the Ombudsman is not associated with the State Pension age adjustments that impacted around 3.6 million women born in the 1950s.

The recent inquiry by the PHSO disclosed that it took the DWP an entire eight years to brief a British ex-pat on changes to his State Pension, which resulted in him being £3,000 per annum poorer. The Ombudsman has called on the UK Government to ensure all communications are "always fair, clear, and consistent".

Meanwhile, the State Pension age is on track to incrementally rise from 66 to 67 over the period of 2026 to 2028. Another increase to 68 is anticipated sometime in the 2040s.

To verify your own State Pension age, you can utilise the free online tool available at GOV.UK here, reports the Daily Record.

In one particular case, Adrian Furnival, now aged 82, and his wife Sheila, 67, relocated to Brittany back in 1994. Adrian learnt in 2018 via the yearly DWP uprating communication that he would stop receiving Adult Dependency Increase (ADI) payments from 2020 – a financial boost awarded when the primary breadwinner hits State Pension age but their spouse hasn't yet.

The PHSO has acknowledged that this change will see him out of pocket by over £250 monthly.

UK residents were informed about the alterations to ADI payments back in 2010, but according to the PHSO, the DWP didn't properly inform Adrian about these changes, which they should have done in April 2010.

The Ombudsman criticised the DWP for not addressing his initial enquiries and complaints swiftly and has suggested that Adrian should be given an apology from the Department along with "£675 for the injustice he suffered".

The PHSO disclosed: "The number of those who were living abroad and entitled to ADI is unknown but in May 2019, a year before ADI ended, DWP told Parliament that 10,817 people were still in receipt of ADI."

Moreover, the Ombudsman believes the DWP ought to offer a "comparable remedy to anyone who approaches the Department in a similar situation".

Parliamentary and Health Service Ombudsman Rebecca Hilsenrath commented on the issue, stating: "Poor communication from Government departments damages trust in public services."

She further remarked on the DWP's track record: "DWP has a history of failing to communicate pension policy changes clearly and failing to learn from its mistakes. In Adrian's case, this meant that, without the right information, he lost the opportunity to prepare for his retirement. It also caused him unnecessary financial worry."

Ms Hilsenrath emphasised: "Anyone who believes they have had a similar experience to Adrian should contact DWP. DWP has complied with our recommendations and will provide a comparable remedy to anyone who approaches them with a similar situation."

In a significant development last December, the DWP acknowledged the PHSO's verdict of maladministration regarding the way it informed women born in the 1950s about changes to their State Pension age, issuing an apology.

Despite this, the Department has not fully embraced the PHSO's suggestions and has decided against establishing a compensation scheme for the women impacted.

The Department has committed to absorbing the lessons from this episode and is collaborating with the Ombudsman to devise an action plan aimed at ensuring that future alterations are communicated effectively.

Adrian's full account can be accessed on the PHSO website here.