A significant error by the Department for Work and Pensions (DWP) has led to potential underpayments for thousands of Universal Credit claimants due to pension contributions not being deducted from their earnings before calculations. Steve Webb, a former pensions minister, uncovered the issue after receiving inquiries from claimants who were incorrectly informed that their pension contributions could not be deducted. This oversight may result in claimants being owed increased payments and backdated amounts, with some individuals already securing significant arrears. The DWP has acknowledged the mistake, promising to rectify future Universal Credit entitlements and stating that evidence of pension contributions must be provided by claimants. Webb and This is Money have called for ongoing investigations to ensure that all pension contributions are accurately accounted for in benefit calculations. The situation highlights the importance of proper training for DWP staff regarding the rules surrounding Universal Credit and pension deductions.