DWP Pension Letter Mistake Cost Me £3,000 Overnight – Eight Years of Unnoticed Loss

The Department for Work and Pensions (DWP) has been criticized for its poor communication after it took eight years to inform Adrian Furnival, an 82-year-old ex-pat living in Brittany, about a significant change to his state pension.

This oversight left him £3,000 a year worse off due to the abrupt end of his Adult Dependency Increase (ADI) payments.

The Parliamentary and Health Service Ombudsman (PHSO) has ordered the DWP to apologize and pay £675 in compensation for the distress caused by this failure. This case highlights ongoing concerns about how DWP communicates pension policy changes.

What Happened?

In 2018, Mr. Furnival received an annual statement from the DWP informing him that his ADI payments would stop in 2020. This payment supplement was provided to pensioners whose partners had not yet reached State Pension age, helping to support households.

While individuals in the UK were informed of this change in 2010, Mr. Furnival and his wife Sheila—who moved to France in 1994—only learned about it eight years later. This delay left them without enough time to prepare for the financial impact, costing them an estimated £250 per month.

Ombudsman’s Findings

The Parliamentary and Health Service Ombudsman found that the DWP failed to notify Mr. Furnival about the policy change in 2010, as it should have. It ruled that the department’s failure to communicate this information properly caused unnecessary financial hardship and anxiety.

Rebecca Hilsenrath, the Parliamentary and Health Service Ombudsman, commented:

“Poor communication from Government departments damages trust in public services. DWP has a history of failing to communicate pension policy changes clearly and failing to learn from its mistakes.”

The Ombudsman recommended that DWP provide a comparable remedy for anyone in a similar situation who comes forward with their case.

Impact

The lack of timely information had a serious impact on Mr. Furnival and his wife. Reflecting on the situation, he said:

“If they had told us at the same time as everyone else, we could have had eight more years to plan for the shortfall. My wife or I could have tried to get a job. By 2018, we had no way of replacing that income.”

Mr. Furnival initially tried to resolve the issue directly with the DWP, but after waiting nine months for a response, he raised the matter with his MP and eventually took his complaint to the Ombudsman.

Lessons Learned

In December 2023, the DWP admitted to maladministration regarding its communication failures. The department also acknowledged similar failures in informing women born in the 1950s about changes to the State Pension age.

The DWP accepted the PHSO’s findings and pledged to improve its communication processes. It has committed to developing an action plan to ensure future policy changes are communicated clearly and promptly.

A DWP spokesperson stated:

“We will learn lessons from this case and work with the Ombudsman to make sure future changes are communicated effectively.”

If You’re in a Similar Situation

If you believe you’ve experienced a similar situation with the ADI payment or other pension-related issues, here’s what you can do:

1. Contact the DWP directly to raise your concerns.
2. Gather all relevant documents, such as statements and letters from the DWP.
3. File a complaint with the PHSO if you feel the DWP has not handled your case properly.

The DWP has agreed to offer comparable remedies to others affected by similar communication failures, so it’s important to take action if you feel you’ve been wronged.

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