Pensioners Warned To Check Compensation Claims – DWP Error Impacts Thousands After WASPI Complaints

The Department for Work and Pensions (DWP) is once again under scrutiny for its handling of pension policies, with fresh criticism from the Parliamentary and Health Service Ombudsman (PHSO), Rebecca Hilsenrath. The Ombudsman highlighted the department’s repeated failures to learn from past mistakes, leaving pensioners in precarious financial situations. One prominent case involves 82-year-old Adrian Furnival, whose experience reveals broader systemic issues within the DWP’s communication practices.

Financial Impact of ADI Policy Changes

The Adult Dependency Increase (ADI), a supplementary payment for pensioners whose partners had not yet reached pension age, was discontinued in 2020. While UK-based pensioners were informed of this change in 2010, Mr. Furnival, a UK citizen residing in France since 1994, was not notified until 2018—just two years before the payments ceased. This delay left him and his wife unprepared for a £3,000 annual shortfall, approximately £70 per week.

Mr. Furnival expressed frustration at the late notification, noting that timely communication would have allowed them to adjust their financial planning or seek alternative income sources. Instead, the abrupt change placed significant strain on their household budget.

Ombudsman’s Findings and Recommendations

The PHSO investigated the case and concluded that the DWP was at fault for inadequate communication. The Ombudsman outlined several remedies for the injustice:

1. Formal Apology: The DWP was directed to issue an official apology to Mr. Furnival.
2. Compensation: Mr. Furnival was awarded £675 for the distress caused by the department’s shortcomings.
3. Comparable Remedies: The DWP was urged to extend similar compensation to other affected individuals who come forward.

Rebecca Hilsenrath emphasized the importance of effective communication in maintaining public trust. She highlighted the broader implications of such failures, noting the harm caused by maladministration within essential public services.

Broader Context and Ongoing Scrutiny

The DWP has faced repeated criticism over its pension policies. A notable example includes its handling of state pension age changes for women born in the 1950s, known as the WASPI case. Despite acknowledging failures in communication, the department refused full compensation, citing the prohibitive cost of £10.5 billion.

The ADI case has renewed scrutiny on the DWP, with advocacy groups urging affected pensioners to come forward. The discontinuation of ADI payments impacted thousands, including over 10,000 households in 2019, but the full extent of those affected, particularly among expatriates, remains unclear.

Pensioners’ Growing Frustrations

Mr. Furnival’s case highlights the broader frustrations many pensioners feel toward the DWP. He described years of inadequate communication, including prolonged delays in receiving responses—sometimes up to nine months—and a lack of clarity throughout the process.

Reflecting on the situation, Mr. Furnival remarked, “If they had told us at the same time as everyone else, we could have had eight more years to plan. By 2018, we had no way to replace that income.”

The DWP’s Response and Next Steps

A DWP spokesperson stated, “We are committed to supporting all pensioners, both in the UK and abroad, and we keep our processes under constant review. We will be considering what we can learn from this report.”

The PHSO has encouraged individuals who believe they were similarly affected by ADI policy changes to contact the department. To rebuild trust, the DWP must prioritize transparency, timely communication, and effective remedies for those impacted by its past failures.