THE time frame for which thousands of parents are set to get £5,000 following a state pension error has been revealed.
The mistake, which was first revealed in 2022, has seen 210,000 people miss out on retirement money they’re entitled to.
1
HMRC and the Department for Work and Pensions (DWP) have now revealed that most of those affected will be contacted in the next 18 months.
Speaking in the Commons last week, Financial Secretary to the Treasury, Nigel Huddleston MP said: “HMRC started contacting potentially impacted customers from September 2023, prioritising those above state pension age.
“They aim to identify and contact the majority of individuals who may have been affected over the next 18 months so that those eligible receive any arrears payments as quickly as possible.”
It’s understood that 150,000 of those affected by the historic error are still alive and around 60,000 are now deceased.
READ MORE IN MONEY
The DWP estimates that a total of £1.3billion is owed to those affected – that equates to an average amount of £5,000 owed to each individual.
When the mistake was uncovered the DWP described it as the “second largest” source of errors in state pensions.
Those affected are people who claimed child benefit, largely women who were stay-at-home mums, before May 2000 as they could have gaps in their National Insurance (NI) record which in turn affects the amount of state pension they get.
The amount of state pension someone gets is based on their NI contributions and the number of “qualifying years” they have.
Most read in Money
From 1978 to 2010, protection was provided for parents to avoid these gaps by a system known as Home Responsibilities Protection (HRP) credits.
This system was then replaced in 2010 by the one we have now, called National Insurance Credits.
If someone claimed child benefit before May 2000 and did not provide their NI number on the form, it’s possible that their credits may not have been transferred to their NI account from the child benefit computer.
This may affect their pension entitlement and women who are now in their 60s and 70s are most likely to be affected.
The DWP has already started sending letters to thousands of people who might have been entitled to HRP between 1978 and 2010 but have no HRP on their NI record.
It expects to send several hundred thousand letters to those affected over the next 18 months.
Where errors are found, NI records will be corrected and the DWP will then recalculate state pensions and pay arrears.
This could result in increased pension payments as well as a lump sum payment.
Last year, The Sun spoke to Susan Burton, 66, who almost missed out on £50,000 for her retirement because of this error.
Another lady, 74, has received a £17,000 windfall after falling victim to the error.
It means that finding out if you have been missing out, could mean a big pay day.
What do I need to do now?
The DWP says it has begun the process by writing to those already over pension age, but so far has not given any update yet on how many letters they’ve sent or what response they have received.
For the tens of thousands of those affected who have died, it will be a matter of tracking down the families of the deceased.
Sir Steve Webb, a former pensions minister who is now a partner at consultants LCP, told The Sun: “The scale of this problem is such that it is going to take 18 months to try to track down all those who may have missed out.
“But HMRC’s records give them only very limited information about who to contact, so anyone who thinks they were eligible for Home Responsibilities Protection which may be missing from their state pension should check if they were entitled and put in an application.”
Anyone who has received child benefit since 1978 should check their NI record.
If the payment is missing, there is a form that can be filled in to get the information added to your record.
It is called a CF411 form and it can be found on the government’s website.
You can also contact the HMRC National Insurance helpline for an application form.
Your state pension will then be automatically recalculated and the arrears will be paid.
You can still apply for HRP if, for the full tax years (April to April) between 1978 and 2010, if you were either:
- Sharing the care of a child under 16 with a partner you lived with and they claimed Child Benefit instead of you
- Caring for a sick or disabled person
Any HRP you had before April 6, 2010, have converted to National Insurance credits.
You must have reached state pension age on or after April 6 for these credits to go towards your pension.
Home Responsibilities Protection (HRP) explained
HRP was a scheme to protect parents’ and carers’ state pension.
National Insurance credits replaced HRP in 2010.
Most people got HRP automatically if they were getting child benefit in their name for a child under the age of 16 and they had given the child benefit office their National Insurance number.
If you think you may be entitled, but you have questions, the Pension Service can be reached using the gov.uk website or by calling 0800 731 0469.
READ MORE SUN STORIES
Elsewhere, the exact amount you need to retire comfortably – including holidays abroad – has been revealed.
Plus, a Martin Lewis fan has revealed how the expert’s little-known tip helped them to boost their state pension by £7,000.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.
