Deferred State Pension

Gemini1946

On 4th September 2024 I requested a value for my deferred pension. I chased this request on 6 occasions and sent emails to my MP to chase.

I had been told that the delay was because they were verifying if I was entitled to any Widows Pension. My wife died in 2022 so they had already had 2 years to investigate.

I eventually received the valuation on 13th March 2025. However, they had stopped accruing interest on the day that I made the application.

As you aware probably aware interest is accrued on deferred pension at base rate + 2%. So this had cost me a gross loss of around £4,500.

I raised an objection and was told "there was no maladministration" and therefore I had no claim.

I referred the matter to the ICE who in March 2026 upheld my claim stating that the DWP should apologise, consider making a payment for Actual Financial Loss and make a consolatory payment of £350.

I received the £350 quite promptly on 30th March 2026 also saying that the case was closed.

I continued to pursue the DWP who request proof of the account that I would have put the funds into and the interest rate on that account.

On 10th August 2026 they transferred £1,134.14 into my account with no explanation but I estimate that this was loss of interest, net of tax, during the period from September 2024 to March 2025.

They claim that they have no liability for delay in payment as there is no maladministration if the investigation is resolved within 12 months.

 

I strongly feel that any of your audience who have or intend to deferred their state pension should be aware that if you request payment

1. Interest will stop accruing immediately and
2. As long as the deferred amount due on the day the request is made is paid within 12 months they have no claim for losses.

It has taken me 2 years and a lot of work and correspondence to get to this point so I pass this on to those who may become affected.

Marcon

I'm sorry you've been led such a merry dance - how very frustrating.

As you aware probably aware interest is accrued on deferred pension at base rate + 2%. So this had cost me a gross loss of around £4,500.

Just to clarify - that rate only applies where someone takes their deferred pension as a one-off lump sum (an option which was only open to those reaching State Pension Age before 6 April 2016).

Bettie

yes, I lost a few hundred pounds in lost interest because of this . Also no breakdown of the lump sum which I would have liked. Can't moan too much as it was tax free for me.

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82139545#Comment_82139545

Certainly worth trying to be a non-taxpayer in the year in which you claim the lump sum!