The British Treasury has recently made a key announcement that will bring relief to many people, particularly women aged between 60 and 70. HM Revenue and Customs (HMRC) started reaching out to seniors who have gaps in their National Insurance (NI) record caused by missing periods of Home Responsibilities Protection (HRP).
It is expected that this process, which will take around 18 months, will allow those eligible to receive the payments owed to them quickly.
Roughly 210,000 seniors, mainly women, are expected to receive underpayment shares totalling £1.3 billion. This equates to an average of around £5,000 per person.
DWP has stated that those closest to State Pension age, in particular those in their 60s and 70s, will be the first to receive these letters.
Treasury Financial Secretary Nigel Huddleston MP confirmed this development to the Commons. He also disclosed that HMRC was teaming up with the Department for Work and Pensions (DWP) to identify those affected by this historic administrative error.
HMRC and DWP are working together to correct cases as quickly as possible. HMRC started contacting potentially impacted customers from September 2023, prioritising those above State Pension age.
Check Your Eligibility Online
Anyone who suspects they may have been affected can check their eligibility online using the self-identification tool available on the GOV.UK website.
Those potentially affected will be invited to check their eligibility and apply to HMRC for Home Responsibilities Protection. If accepted, the state pension award will be corrected and arrears paid.
Both HMRC and DWP will also be running a wider campaign to make sure everyone who may be eligible is aware of the remedial exercise.
HMRC's State Pension Underpayments Breakdown
Back in 2020, the DWP became aware of a number of people having their state pension not automatically increased in line with legislation. This prompted the Department to investigate the extent of the problem. There are three main categories of state pension underpayment:
- Cases covered by the State Pension Underpayments (LEAP) exercise
- Home Responsibilities Protection (HRP) cases where HRP has not been recorded accurately on National Insurance records
- Cases where National Insurance credits need to be updated for people claiming Universal Credit.
Below is a detailed breakdown of the cases reviewed, the overdue amounts identified, and the payments made between January 2021 and February 2024:
| Category | Cases Reviewed | Underpayments Identified | Average Arrears | Total Amount Repaid |
|---|---|---|---|---|
| Married (Cat BL) | 317,955 | 43,367 | £5,713 | £243.8 million |
| Widowed (Cat B) | 298.099 | 21,175 | £12,486 | £262.3 million |
| Over 80 (Cat D) | 89,634 | 32,474 | £2,192 | £65.5 million |
How to Check If You Are Affected or Make a Claim
The fastest method of finding out if your State Pension is insufficient is to call the Pensions Service on 0800 731 046920. Full contact details are also available on the government website.
Nearly 12.7 million people in Great Britain, including more than a million in Scotland, currently receive a state pension. Of these, 9.3 million receive the Basic State Pension, with a further 3.4 million receiving the New State Pension. The Basic State Pension is £169.50 a week, while the New State Pension is £221.