A total of £209.3m of state pension underpayments have been identified so far by the government, new data published by the Department for Work and Pensions (DWP) has revealed.

Since a formal review began in January last year, the DWP’s checking process has identified 31,817 underpayments that make up the total figure.

While state pension underpayments can vary depending on the circumstances of the individual, they are on average running into amounts worth thousands of pounds.

However, despite the latest figures confirmed by the DWP, an official report by the National Audit Office (NAO) published last year suggested a far greater 134,000 pensioners had been underpaid an amount totalling over £1bn. The NAO estimated the average repayment to those people the DWP could trace would stand at around £8,900.

“While it is positive the government has identified over £200m of state pension underpayments, this is still a long way short of the £1bn the National Audit Office estimates is owed to pensioners,” commented head of retirement policy at AJ Bell, Tom Selby.

“This saga is particularly tragic as many of the people affected will have been struggling unnecessarily for years. What’s more, the NAO estimated around 40,000 of the people who were due a repayment had sadly died without receiving it. It is absolutely critical all those affected by this scandal receive the money they are owed as quickly and efficiently as possible.

“For retirees on low incomes preparing for a cold winter, a cash windfall worth thousands of pounds could prove a lifeline after years surviving on an artificially low income due to the DWP’s errors.

“Once compensation has been paid, the government needs to undertake a comprehensive review of its processes to ensure these mistakes are never repeated.”

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