The Department for Work and Pensions (DWP) has confirmed that two specific groups of state pensioners are being excluded from reviews into fraud within the benefits system. This announcement comes as part of the DWP's latest Fraud and Error in the Benefit System report, which covers the past 12 months.
Fraud Report Findings
The report reveals that National Insurance contribution errors remain the primary cause of State Pension underpayments. Underpayments have remained steady at 0.3 percent, equating to £390 million in the year leading up to April 2026, a slight decrease from £430 million in the previous year. The DWP noted that NI contributions errors account for 0.1 percent of total State Pension expenditure.
Exempt Groups
In its fraud review documentation, the DWP explained that two categories of claimants are exempt from these checks. These include "claimants who live overseas" and claimants "who have reported a non-GB address." Both groups are explicitly stated to be "not part of the SP review."
Expenditure Increase
The total expenditure on state pensions has risen to £146.1 billion in 2026, up from £136.4 billion in 2025 (a revised figure from the previous year's release). The DWP cautions that due to this increase, the monetary values of fraud and error cannot be directly compared between these years.
Incorrectness Rate
The report also indicates that the overall incorrectness rate for state pensions—meaning the proportion of claims that were either overpaid or underpaid—stood at 7 in every 100 claims in 2026.
Understanding HRP Errors
Explaining the reasons behind errors and overpayments, the DWP highlighted the Home Responsibilities Protection (HRP) scheme, which was in place from 1978 to 2010. This scheme was designed to protect the state pension entitlement of individuals with domestic caring responsibilities by reducing the number of qualifying years needed for a full basic state pension. The HRP has since been replaced by the new, full state pension.
Some individuals have not had all eligible years of HRP recorded on their National Insurance records, resulting in incomplete records that affect their state pension entitlement. To address this, the DWP and HM Revenue and Customs (HMRC) have established the Legal Entitlements and Administrative Practice (LEAP) correction exercise. This initiative aims to identify and invite potentially affected individuals to apply for corrections, ensuring their records are updated and they receive both arrears and revised ongoing state pension payments.
