Royal London analysis shows 49% of new state pension recipients missed the full amount

Royal London analysis of Department for Work and Pensions data found that 1,737,342 of the 3,407,567 people receiving the new state pension in 2023-24 were paid the full weekly amount, while 49% received less¹. The figures, reported on 5 September 2024, cover the quarter to May 2023 and were extracted from Stat-Xplore, to which the DWP referred Royal London¹.

In 2023-24 the full new state pension was worth £203.85 a week¹. Royal London found 149,317 pensioners were paid less than £100 a week, 17,546 received less than £20 a week and 5,677 received less than £10 a week¹. The distribution of weekly amounts was:

Analysis by Royal London¹.

According to Royal London, one of the main reasons people miss out is gaps in their National Insurance record, which some do not realise until it is too late to act¹. Sarah Pennells, consumer finance specialist at Royal London, said gaps can arise from low earnings while working, unemployment without claiming benefits, being a high earner with young children who did not register for child benefit, or working abroad¹. A DWP spokesman said there are a variety of reasons some pensioners have a lower state pension, including contracting out and paying less National Insurance, and that those on the lowest incomes are encouraged to claim Pension Credit, worth on average £3,900 per year¹.

The new State Pension rules changed on 6 April 2016 for men born on or after 6 April 1951 and women born on or after 6 April 1953¹. In 2024-25 the full level is £221.20 a week, or £11,502.40 a year¹. Ten years of National Insurance contributions are needed to get any state pension, and 35 years for the full amount, subject to contracting-out history¹.

The government has repaid £594m to 99,558 individuals underpaid state pension due to system errors, including around 44,000 married women, 23,000 widows or widowers and 33,000 people over 80¹. This covers the Legal Entitlements and Administrative Practices correction exercise and a separate error relating to Home Responsibilities Protection missing from National Insurance records¹.

Why it matters for households

The figures describe payments already made in 2023-24, so they affect people who reached state pension age under the post-2016 rules and are already claiming. For anyone receiving less than the full £203.85 weekly rate that applied in 2023-24, the shortfall reflects their contribution record rather than a change in rates. The 2024-25 full rate is £221.20 a week¹.

Gaps in a National Insurance record can sometimes be filled with voluntary Class 3 contributions, usually for the past six years, with a deadline of 5 April each year¹. A temporary relaxation allowed some people to fill gaps back to 2006-07, and that group can currently pay for gaps older than six years until 5 April 2025¹. Voluntary contributions do not always increase a state pension¹. An online tool to check and fill gaps was launched this year¹.

Pension Credit tops up weekly income to £218.15 for single people and £332.95 for couples in 2024-25, with maximum savings credit of £17.01 a week for a single person and £19.04 for couples¹. It also acts as a gateway to other benefits including a free TV licence and this year's winter fuel payment¹. How pensions affect Pension Credit and other benefits is set out separately.

What happens next

The deadline for the extended group to pay voluntary contributions for gaps from more than six years ago is 5 April 2025¹. The DWP's correction exercises for underpaid state pension are ongoing¹. Former pensions minister Sir Steve Webb urged widows and widowers to check they are being paid the correct amount, following concerns that those widowed before retiring were being paid the wrong amount¹.