The Department for Work and Pensions (DWP) is once again under fire for its failure to properly inform pensioners about major policy changes, particularly the discontinuation of the Adult Dependency Increase (ADI). The Parliamentary and Health Service Ombudsman (PHSO) has criticized the department for failing to learn from past mistakes, leaving thousands of pensioners struggling financially.
The case of Adrian Furnival, an 82-year-old pensioner living in France, has drawn attention to the issue. Mr. Furnival lost £3,000 annually after the ADI payments were suddenly stopped in 2020. Due to inadequate notice from the DWP, he had no time to prepare for the financial shortfall, leading to severe economic difficulties.
Pensioners Urged to Check Compensation Claims
| Aspect | Details |
|---|---|
| Policy in Question | Adult Dependency Increase (ADI) |
| Date of Discontinuation | April 2020 |
| Primary Issue | Failure to properly notify affected pensioners |
| Number of Affected Pensioners | At least 10,817 as of 2019 |
| Compensation Awarded | £675 to Adrian Furnival |
| Official Information | GOV.UK Pensions |
What Was the Adult Dependency Increase (ADI)?
The Adult Dependency Increase (ADI) was a financial supplement given to pensioners who had a dependent spouse or partner below the state pension age. It was introduced to help support non-working partners in households that relied solely on one person’s pension.
However, in April 2020, the DWP officially ended the program, cutting off financial assistance to thousands of pensioners.
While UK-based pensioners received a decade’s notice (from 2010 to 2020), many living abroad only found out a few years before the payments stopped, leaving them with little time to plan alternative income sources.
Case Study: Adrian Furnival
- Location: France (resident since 1994)
- Delayed Notification: Only learned about the ADI cancellation in 2018, two years before payments stopped
- Financial Impact: Loss of £70 per week, totaling £3,000 annually
- Complaint: Had he been notified in 2010, he and his 67-year-old wife Sheila could have made financial adjustments
Mr. Furnival expressed frustration and disappointment, arguing that the DWP’s failure to communicate properly left him in a financially vulnerable position.
Ombudsman’s Investigation & Findings
Following numerous complaints, the Parliamentary and Health Service Ombudsman (PHSO) launched an investigation into the DWP’s handling of the ADI discontinuation.
Key Findings
- The DWP was guilty of maladministration for failing to provide adequate notice to affected pensioners.
- The lack of timely communication resulted in financial distress for many elderly individuals.
- The DWP had previously made similar errors, showing a pattern of poor communication.
Recommendations from the Ombudsman
- Formal Apology: The DWP must issue a written apology to affected pensioners.
- Compensation Payments:
- Adrian Furnival was awarded £675 for financial distress.
- Other affected pensioners are encouraged to file complaints to receive similar compensation.
- Policy Reforms: The DWP must improve transparency and ensure clearer communication for future pension changes.
DWP’s History of Pension Mismanagement
The ADI failure is not an isolated case—the DWP has faced previous criticism over how it handles pension reforms.
The WASPI Scandal
The Women Against State Pension Inequality (WASPI) case is another example of poor DWP communication.
- Who Was Affected? Women born in the 1950s whose state pension age increased without proper notice.
- What Happened? Many women discovered too late that they would have to work longer than expected, causing financial hardship.
- Government Response: The DWP apologized but refused to pay full compensation, citing a £10.5 billion cost.
Both the ADI and WASPI cases highlight the DWP’s failure to provide clear, early warnings about pension changes, leading to economic difficulties for retirees.
Who Was Affected by the ADI Policy Change?
The ADI was discontinued in 2020, impacting thousands of pensioners.
Key Statistics
- 10,817 pensioners were receiving ADI payments as of 2019.
- Many pensioners living abroad were not notified in time.
- The exact number of affected individuals remains unknown due to DWP’s lack of data transparency.
Frustration Among Pensioners
The lack of proper communication has led to significant frustration among pensioners.
Common Complaints
- Delayed DWP Responses: Some pensioners reported waiting up to nine months for replies to their concerns.
- Confusing Notices: Many received vague or misleading letters about the pension changes.
- Lack of Preparation Time: Those affected had little time to find alternative financial support.
DWP’s Official Response
A DWP spokesperson addressed the concerns, stating:
“We are committed to supporting pensioners, both in the UK and abroad. We will review this case and consider improvements for the future.”
However, this statement has not satisfied many pensioners, who are demanding real action instead of empty promises.
Also Read: DWP PIP Major Changes – Vouchers and One-Off Payouts to Replace Regular Payments
What Can Affected Pensioners Do?
If you were impacted by the ADI discontinuation, you may be eligible for compensation.
Steps to Take
- Contact the DWP:
- Call the State Pension Helpline for information about your case.
- File a Formal Complaint:
- Submit a complaint to the Parliamentary and Health Service Ombudsman (PHSO).
- Request Compensation:
- Ask for financial reimbursement for any distress or hardship caused.
- Stay Updated:
- Regularly check GOV.UK Pensions for policy updates.
FAQs on ADI Discontinuation & Compensation
1. What was the Adult Dependency Increase (ADI)?
The ADI was an extra pension payment for pensioners supporting a younger dependent partner.
2. When did ADI payments officially stop?
The ADI program ended in April 2020.
3. Why are pensioners upset about the ADI changes?
Many were not informed in time, leaving them financially unprepared.
4. Who is eligible for compensation?
Pensioners who were receiving ADI before 2020 and were not properly notified may qualify.
5. How much compensation is available?
- Adrian Furnival received £675.
- Other pensioners can apply for similar payments through the Ombudsman complaint process.
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