People claiming a State Pension could be receiving the wrong amount if they were previously on Universal Credit, the Department for Work and Pensions has discovered. It says it will be correcting any underpayments that have arisen as a result of the error.

Benefit claimants receive National Insurance credits that go towards their State Pension but there have been problems with recording this information, according to the DWP. It says HMRC was unable to process details of NI credits from Universal Credit between 2017-18 and 2022-23.

This would mean some Universal Credit claimants have the incorrect amount of credits listed and are therefore getting less pension than they should be. People need 35 years of National Insurance contributions or credits to get the full amount of New State Pension and at least 10 years' worth to get any pension at all.

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In its annual report, the DWP says: "Some people who received Universal Credit may not have had their National Insurance credits correctly attributed to their National Insurance record held by HM Revenue and Customs which could affect their State Pension.

"National Insurance records are maintained by HM Revenue and Customs based on information from employers through PAYE, self-assessment tax returns from the self-employed, and information provided by DWP on benefit receipt where that creates a National Insurance credit. Between 2017-18 and 2022-23, information about Universal Credit entitlements could not be processed by the National Insurance Recording System.

"National Insurance credits can affect the value of a State Pension award, so there was a risk that some people who had claimed Universal Credit and subsequently reached State Pension age may have been underpaid. During this period the Department put in place a manual system with HM Revenue and Customs to update an individual's National Insurance record where they felt they qualified for National Insurance credits in respect of time on Universal Credit."

It says the problem with HMRC recording DWP Universal Credit National Insurance credits has now been fixed and anyone who's received too little State Pension will get the amount adjusted. It did not detail how many people may be affected.

The report said: "With the issues now resolved between the DWP and HM Revenue and Customs systems, claims data relating to the affected years can now be successfully processed by HM Revenue and Customs. When these records are updated information will be sent to the Department which will then correct any State Pension awards that are affected as part of our business-as-usual processes."

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The issue is separate from the other State Pension correction exercise currently being carried out after people had Home Responsibilities Protection (HRP) missing from their National Insurance records. HRP was available between 1978 and 2010 for stay-at-home parents and carers, reducing the number of qualifying years they needed for the old Basic State Pension. Since April 2010, it has been replaced by National Insurance credits.

The DWP found discrepancies in the recording of some women's HRP on their National Insurance records, which resulted in State Pension errors. A previous correction exercise between 2009 and 2011 rectified some of the mistakes but more were identified in 2021-22.

HMRC is using National Insurance records to identify as many people as possible who might have been entitled to HRP between 1978 and 2010. It will write to people who meet these criteria, to find out if they are eligible and, if so, they'll be able to claim online. The DWP will then recalculate their State Pension entitlement and let people know whether they are due any back pay.

The National Audit Office (NAO), which scrutinises public spending for Parliament, said it is estimated that 210,000 people have been underpaid £1.3 billion in State Pension due to the HRP issues.

That suggests an average payout of around £6,000 each. But some will get far more. In one case, a woman has already won back £17,000 after she was underpaid for 13 years. The 75-year-old will also see her State Pension increase by around £30 to £152 per week.