State pension warning: Families urged to act or they risk losing thousands after DWP deletes records

Relatives who have waited years to find out if their late mothers lost out are now receiving letters from the DWP stating it has abandoned further investigation of their cases.

This is because until January 2021, the DWP destroyed records several years after the death of a pensioner and their surviving spouse.

Many relatives have expressed bewilderment and anger, describing the situation as "a disgrace" and a "total sham".

The DWP has admitted that 2,500 families are affected by the deletion of pre-2021 data, according to Liberal Democrat Work and Pensions spokesman Steve Darling who pressed the Government for answers.

However, there is a glimmer of hope for those who can unearth old documentation.

Families who manage to find old letters from the DWP and bank statements showing pension payment amounts could persuade the Government to reopen cases.

The deletion of records was paused after it was discovered that some state pension records, particularly those involving older married women and widows, contained numerous errors. This pause on deletions will remain in place until December 31, 2026.

Many relatives had logged details years ago on a Government website set up for next of kin following pressure from campaigners and MPs.

They question why they weren't informed earlier about the deletion of records.

Darling said: "It's deeply troubling that families are being told the DWP can't check because records have supposedly been deleted.

Darling added that it is "a step forward" that the DWP says it will now consider applications based on people's own paperwork.

The MP also pushed HMRC to disclose whether it held useful information about deceased people's state pensions, but it has since emerged that it does not.

Steve Webb, partner at pension consultant LCP wrote on This is Money: "It is immensely frustrating for people who registered details of a loved one to be kept waiting years for a response, only to be told that records have been deleted."

Bereaved relatives will need to "turn detective" to find the necessary records for the DWP to reopen a case.

If they don't have old DWP letters or bank statements, they check if other family members might have kept them.

Next of kin or executors of recently deceased parents may be able to request statements from their bank, building society, or Post Office Card Account.

Steve Webb advised: "If you are tracking down old bank statements for a late relative, it would be most useful to narrow it down to the months just before and after their spouse reached state pension age, or just before and after their spouse died."

To check for a possible underpayment, try to find any of the following figures and compare them with the official state pension rates at the time:

• The amount your mother received before your father retired (if applicable)
• The amount she received after your father retired
• The amount she received after your father passed away
• Whether her pension amount changed when she turned 80 (if applicable)

A DWP spokesperson says: "We always encourage next of kin and representatives of deceased customers to contact us if they have relevant proof such as historic letters from the department so we may be able to review the customer's state pension award."

The spokesperson added that the department continues to work through outstanding cases, with 857,050 cases reviewed as of September 2024.

Webb urges the DWP to communicate clearly that they will still consider evidence of underpayments.

He believes the department should use all records at its disposal to investigate any reasonable request to check for an underpayment.

For many families, this represents their last chance to discover if their loved ones were shortchanged by the state pension system.

Those affected are advised to act promptly to gather whatever documentation they can to support their case.