05 September 2023 , 18:31
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Ageing IT systems dating back to the 1980s mean pensioners may be missing out on payments they're entitled to, a watchdog chief has warned.
Gareth Davies, who heads the National Audit Office (NAO) said ministers must invest heavily in Government computer systems to avoid a crisis similar to crumbling concrete in schools. Latest Government figures show a massive £670million was underpaid to pensioners in the last financial year.
Age UK said the situation is "extremely concerning" and said many who have been underpaid for years can "ill afford to wait any longer". And Labour's Shadow Work and Pensions Secretary, Liz Kendall, told The Mirror it is a "scandal".
Shameful figures show a massive 165,000 state pensioners are thought to have missed out on £1.2billion because of historical official errors dating back years.
Labour frontbencher Liz Kendall described it as a 'scandal' (John Alevroyiannis)Mr Davies' remarks follow a series of stinging reports by auditors, including one in March which found record-keeping systems from 1988 are still in operation at the Department for Work and Pensions (DWP). Mr Davies wrote in The Times: "Recent NAO reports chart how ageing systems are creating problems for service users, such as state pensioners missing out on payments they are entitled to. Outdated technology also acts as a brake on vital innovation in the delivery of frontline services."
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He said he welcomes a focus on improving digital processes, adding: "Just like buildings, this will require long-term investment to deliver most value."
Caroline Abrahams, charity director at Age UK, said: “It is extremely concerning that so many pensioners are still missing out on their state pension due to administrative errors. Some have been underpaid for many years and call ill afford to wait any longer, especially given the cost of living crisis. The DWP must be given the resources needed - staff as well as funding - so it can identify and reach out to those affected and modernise its IT systems. No pensioner should go without their due.”
And Ms Kendall said: "In the heart of a cost of living crisis, it is a scandal that pensioners across our country are missing out on the money they are entitled to. But it's not just crumbling IT systems letting pensioners down, it's a failing Conservative Government continually trying to paper over their own cracks.
"Labour will modernise and reform welfare services, because surely Britain deserves so much better than this."
Last year an estimated £3.3billion was underpaid in benefits by the DWP, including £680million in Universal Credit. This is a record level, but the department told the NAO the main cause was people whose health conditions worsened not informing officials.
The DWP has been contacted for comment.
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