The Parliamentary Ombudsman has launched an investigation into State Pension underpayments to tens of thousands of married women.

The investigation will look at seven cases put forward by consultancy LCP which has campaigned to resolve the issue.

Recommendations from the ombudsman could sees the Government pay out hundreds of millions of pounds in State Pension arrears, according to the consultancy’s partner and former Pensions Minister Steve Webb.

In the event of a successful outcome, LCP expects the ruling to apply to all women who have lost out, including relatives of the thousands who have died without ever receiving the correct pension.

Until 2008 married women could claim their State Pension from the age of 60, but were initially awarded a pension based purely on their own NI contribution record. This record could be patchy if they had spent time looking after family.

When their husband drew their State Pension, married women could then get an uplift of up to 60% on their pension, based on their husband’s contribution. However, this uplift only happened if they made a further State Pension application at this point. Therefore, if married women did not make a second claim they would stay on the lower pension.

LCP estimates that there could be over 100,000 women affected.

The issue is unrelated to Waspi State Pension equalisation.

LCP claims that this is an example of ‘maladministration’, and has been helping women affected by the issue make complaints to the Department for Work and Pensions, the Independent Case Examiner, and the Parliamentary Ombudsman.

Steve Webb, partner at LCP, said: "I am delighted that the Parliamentary Ombudsman has decided to undertake an in-depth investigation into these complaints. 

“In my view these women fell victim to a fundamentally sexist and archaic system which relied largely on married men ticking boxes and passing on claim forms to their wives.

“The women I have spoken to are all intelligent people who do not ignore official correspondence and who would clearly have claimed their uplifted pension if they had realised a second claim was needed once their husband retired. 

“The fact that they did not know this was needed indicates a system which let them down and has cost them in many cases thousands of pounds through no fault of their own.”