HM Revenue and Customs (HMRC) has sent over 370,000 letters to older individuals, predominantly women, informing them that they may have been underpaid on their State Pension entitlements.
According to Daily Record, the government has confirmed that these individuals are due to receive back payments, with the average arrears valued at £7,859.
This comes after the identification of errors in the calculation of Home Responsibilities Protection (HRP), a scheme that was designed to protect parents and carers’ entitlement to the State Pension.
The Impact of Home Responsibilities Protection (HRP) Errors
The errors in the HRP were identified after investigations revealed that historic periods of HRP were missing from the National Insurance records of some individuals.
The HRP scheme was in place from 1978 until 2010, but it was recently discovered that some records were incomplete, leading to inaccurate State Pension payments. People affected by this issue are due to receive back payments by the end of this year.
The Department for Work and Pensions (DWP) and HMRC have set up a Legal Entitlements and Administrative Practice (LEAP) corrections exercise, which allows those affected to apply for arrears payments and corrected ongoing State Pension amounts.
How Many People Are Affected?
The Department for Work and Pensions (DWP) reports that over 493,000 people have used the online tool provided by the government to check for missing HRP.
Additionally, as of the end of September, 37,289 applications have been processed from individuals above State Pension age, and 5,428 applications from people below the age of 66.
The government has already paid out an estimated £42 million in arrears payments, and many individuals are set to receive an average of £7,859 in back payments.
Who Is Eligible for the Back Payments?
Anyone who believes they may be affected by the missing HRP can check their eligibility through the self-identification tool on the government website.
The DWP has particularly targeted individuals in their 60s and 70s with the letters, though all those who may have been impacted are encouraged to check.
Women who were not receiving their correct State Pension due to missing HRP records are among the main group set to benefit from these corrections.
For those who are unsure of their eligibility, the DWP advises using the online tool available at GOV.UK. As the DWP explained:
“Anyone who thinks they may have been affected can check their eligibility online using the self-identification tool on GOV.UK.”
Understanding Hrp Underpayments and Who Qualifies
HRP was designed to safeguard the State Pension entitlements of individuals who were parents or carers. The government estimates that between £300 million and £1.5 billion in underpayments occurred due to errors in HRP recording.
Most affected individuals were those who had gaps in their National Insurance (NI) records during the period between 1978 and 2010. Those who were receiving Child Benefit, caring for a sick or disabled person, or acting as a foster or kinship carer during this period may qualify for these back payments.
The DWP and HMRC continue to promote awareness campaigns to ensure as many eligible individuals as possible are aware of the corrections exercise, which is due to be completed later this year.
