DWP writes to 100,000 to address ‘untold confusion’ over new state pension

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The Department for Work and Pensions is to write to over 100,000 people telling them that they will not qualify for the new state pension.

Following a recommendation from the Work and Pensions committee, the Government is to contact directly those people with less than ten years of qualifying National Insurance contributions.

The Government has been under fire for an awareness campaign that have left millions unaware of the impact of the single-tier state pension, which took effect from April this year.

Under the old system workers would receive a pension with at least five years of contributions.

Pensioners will get the higher amount under each system, so people receiving letters will still receive a pension.

Money Marketing understands the letters will be sent later this year.

Commitee chair Frank Field says: “The Committee has encountered untold confusion among people who wanted to know the value of their state pension, and who had received little or no communication from the Government. It looks as though the Government will begin to apply the lessons from our evidence, by writing to people who do not meet the minimum criteria for the new state pension. We very much welcome this initiative.”

Aegon pensions director Steven Cameron says: “We’d like the Government to go much futher and give everyone a personal estimate of what they are likely to receive.

“There are millions of people who have little or no understanding over their state entitlement. The Government now allows people to request a projection but the vast majority will not do that.

“It’s only then they can take stock and try and plug the gaps in their retirement income.