State Pension back payments of £5,000 are set to be issued to women in their 60s and 70s by the end of next year, as reported by the Daily Record. Approximately 210,000 older individuals, mostly women, may have been impacted by discrepancies in their National Insurance record. The HM Revenue and Customs (HMRC) has been sending out letters over the past year, notifying individuals about missing periods of Home Responsibilities Protection (HRP) that have consequently affected their State Pension entitlement.
The Treasury, in collaboration with the Department for Work and Pensions (DWP), is actively addressing these administrative errors. The total underpayments amount to £1.5 billion, with each individual owed around £5,000. Those affected by the oversight are expected to receive their back payments by the conclusion of next year. The DWP has prioritized sending letters to individuals closest to State Pension age in their 60s and 70s, although anyone believing they are affected can verify their eligibility online through the self-identification tool on GOV.UK.
The DWP has acknowledged underpaying between £300 million and £1.5 billion in State Pension due to inaccuracies in recording HRP. HRP aimed to safeguard parents’ and carers’ State Pension entitlements and was replaced by NI credits from April 6, 2010. HMRC is reviewing NI records to identify individuals eligible for HRP between 1978 and 2010 but lacking HRP on their NI record. It is estimated that tens of thousands of people could receive an average of £5,000 in back payments. Deceased customers’ personal representatives can claim on their behalf.
To determine eligibility and initiate a claim, individuals can refer to the dedicated HRP page on GOV.UK. HMRC and DWP are conducting extensive outreach to ensure all potentially eligible individuals are aware of the rectification process. The online HRP tool facilitates applications for full tax years between 1978 and 2010 under specific criteria, such as caring for a child or a sick or disabled person. Automatic qualification for HRP was granted to individuals meeting certain conditions, including receiving Child Benefit or Income Support.
The news comes amidst efforts to raise awareness about State Pension entitlements and rectify past errors, providing financial relief to those who have been underpaid. The correction exercise is expected to benefit a significant number of older women in the coming months.