UK state pension cost delays depart many in ‘dire monetary straits’ | State pensions

James Regan waited greater than two months, spent greater than 70 hours on the cellphone and needed to threaten authorized motion earlier than he was lastly capable of inform his mom that she can be getting her state pension every week. Susan James* from Eastbourne is just not so fortunate – she continues to be ready for her first cost regardless of placing in an software again in March.

Up and down the nation retirees are reporting that the Division for Work and Pensions (DWP) has didn’t course of their state pension and to start out making their much-needed funds.

The charity Age UK warned that claimants face delays of a number of months – delays, it says, which have left a lot of these affected in “dire monetary straits”.

Most of these dealing with waits are new claimants aged 66 however the issue has additionally affected older individuals who had deferred their pension, maybe as a result of they carried on working previous retirement age.

“DWP stopped my mom’s employment and assist allowance proper on time but didn’t pay the pension she was due,” Regan says.

“What actually annoys me is the truth that I used to be promised a response again that by no means occurred. They solely lastly began making the funds after I threatened authorized motion.”

Regan says he has spent the final two months calling the DWP on his mom’s behalf.

“I had no alternative however to be nearly militant about it, that appears to be the one approach to get the DWP to hear. In the long run we threatened authorized motion, and even then it was paid after the 48-hour deadline.”

In Eastbourne, James is equally annoyed and has contacted her MP for assist.

“I turned 66 in July however claimed on-line again in March,” she says. “I’ve nonetheless not obtained my award letter and have had no different communication with DWP apart from me ringing and writing to them. While you name up you need to wait 40 minutes to speak to somebody however nothing occurs.

“I’ve been paying contributions since I used to be 15 years outdated. I’m a kind of girls who needed to wait an additional six years to get the state pension, and now this. I’m upset and offended.”

The delays are the most recent fiasco to have an effect on the Division for Work and Pensions. In March it emerged that it had underpaid 200,000 girls a mean of £13,500. Some who wrongly obtained as little as 86p per week had been owed in extra of £40,000 in again funds.

Final month, Guardian Cash was contacted by the household of a taxi driver in his 70s who had simply been recognized with terminal most cancers however was having to battle the DWP from his hospital mattress to get his deferred state pension.

“It took weeks for them to ship him a kind,” a member of the family wrote.

“We are actually ready for them to ship a letter detailing his entitlements, and one other kind that should be crammed in earlier than it may be paid, regardless of us contacting them a number of instances and explaining the urgency of the scenario. It’s heartbreaking to see a person who labored a further six years after retirement age on his deathbed, with no earnings.”

Caroline Abrahams, the charity director of Age UK, says the scenario has turn out to be “completely unacceptable”.

She says: “We’re listening to from plenty of older folks whose state pension ought to have come by way of however who’re nonetheless ready, leaving these with little behind them in dire monetary straits.

The Labour MP Christina Rees says: ‘Many individuals throughout my Neath constituency shouldn’t have financial savings or lump sum funds to cowl the delay.’ {Photograph}: Rebecca Naden/Reuters

“In some instances these delays are working into a number of months and, to make issues worse, the DWP doesn’t appear to be routinely informing them that they will obtain advance funds as an alternative to tide them over till the paperwork is full. Ministers should get a grip and kind it out earlier than hardship turns to tragedy, which we imagine to be a rising danger.”

Christina Rees, the Labour MP for Neath, wrote to the work and pensions secretary, Thérèse Coffey, final week, saying “over a dozen” of her constituents had instructed her that they had been fearful about how they had been going to pay payments and purchase meals after months of delay.

“Just like the lower to the £20 common credit score uplift, delays in cost of state pension depart folks in monetary hardship,” she says.

“That is fully unacceptable however but once more the Tories are out of contact with the lived experiences of individuals, be it hardworking households or those that will depend on their state pension to make ends meet throughout their retirement.

“Many individuals throughout my Neath constituency shouldn’t have financial savings or lump sum funds to cowl the delay … I’m calling on the federal government to type issues out earlier than any extra folks need to undergo needlessly whereas they await their very own cash to be paid to them.”

The DWP conceded final month that the pandemic and staffing issues had induced backlogs in funds, with the pensions minister, Man Opperman, telling parliament: “Regular service shall be resumed by the top of October 2021.”

A DWP spokesperson instructed Guardian Cash: “We’re sorry that some new state pension prospects have confronted delays receiving cost.

“All these affected have been recognized and now we have deployed further sources to course of these as a precedence. Any claims made at present shouldn’t be topic to delay.”

David Sinclair, the director of the Worldwide Longevity Centre thinktank, says 2021 has not been yr for the DWP.

“In July the Parliamentary and Well being Service Ombudsman stated that the DWP had failed since 1995 to offer ‘correct, ample and well timed details about adjustments to the state pension age for ladies’.

“Then in September the Nationwide Audit Workplace discovered human errors had been ‘nearly inevitable’ as a result of outdated IT, complicated guidelines and a failure to automate processes. This seems like but extra maladministration, and it’s time for the minister and departmental bosses to become familiar with the issues.”

Stephen Timms, the chair of the work and pensions choose committee, says the DWP has severe inquiries to reply.

“It isn’t but clear how many individuals have been affected,” he says. “The federal government says it is just a small quantity however there may be rising proof that vital numbers of individuals could have been affected. A lot of them will danger hardship because of this.”

Do you qualify for an advance cost?

If you’re a kind of adversely affected by the pension cost delays, do you know that you just would possibly qualify for an advance cost to mean you can hold going financially?

Department for Work & Pensions sign
The Division for Work and Pensions is ‘sorry that some new state pension prospects have confronted delays receiving cost’. {Photograph}: Dave Rushen/SOPA Photos/Rex/Shutterstock

Advance funds had been used an ideal deal by common credit score candidates because the Covid lockdowns hit however not everyone seems to be conscious that they’re obtainable for these ready for a number of different advantages, together with the state pension. Nevertheless, there’s a proviso – you could have to have the ability to present that you’re in “pressing monetary want”.

That is typically outlined as there being a severe danger of injury to the well being or security of you or any member of your loved ones. If different profit funds have ceased in expectation that you’ll begin receiving your pension, that ought to be cheap grounds for an advance to be paid. Age UK says it is very important present as a lot data as attainable about your circumstances, together with particulars of any well being issues or disabilities.

To use you might want to name 0800 731 0469, the pensions’ advance hotline. You should inform the adviser about your circumstances and the way a lot you suppose you’ll need to borrow.

If you’re permitted, the advance shall be paid straight into your checking account, typically the subsequent day. The cash shall be recovered out of your pension funds as soon as they arrive by way of. Advances need to be repaid inside an agreed interval, and there’s no curiosity payable. There may be nothing to cease candidates making use of for a couple of advance within the face of continued delays.

* Title has been modified

Extra reporting by Miles Brignall

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