HMRC may notify hundreds of thousands of older women that their state pension entitlement has been affected by missing Home Responsibilities Protection (HRP) periods in their National Insurance records.
Women in Their 60s and 70s Set to Receive Backdated State Pension Payments Worth £5,000
By Chourouk Derkaoui
Published on 5 October 2024 15:55
Hundreds of thousands of older women may get a letter from HM Revenue and Customs (HMRC) this year. The letter will let them know that their National Insurance (NI) record might have gaps in Home Responsibilities Protection (HRP), which could impact the amount of basic or new state pension they are entitled to.
State Pension Underpayments as £1.5 Billion Owed Due to HRP Errors
The Treasury started sending letters more than a year ago. It combines its efforts with the Department for Work and Pensions (DWP) to solve any administrative errors as quickly as possible.
A total of £1.5 billion in underpayments, averaging £5,000 each, is owed to more than 210,000 older individuals, primarily women, reports Express.
Additionally, the DWP has stated that letters are being sent first to individuals in their 60s and 70s who are closest to reaching state pension age. However, those affected by the mistake should be handed any owed back payments by the end of the coming year.
Nevertheless, individuals can verify their eligibility online using the self-identification tool on GOV.UK if they think that they may have been impacted.
According to the Daily Record, the DWP estimates that mistakes in recording Home Responsibilities Protection (HRP) resulted in underpayments of state pensions ranging from £300 million to £1.5 billion.
The Home Responsibilities Protection (HRP) scheme, created to protect the state pension rights of parents and carers, was replaced by National Insurance (NI) credits on April 6, 2010. HMRC is using NI records to find individuals who may have qualified for HRP between 1978 and 2010 but don't have it on their records.
Since May 2000, it has been required to include an NI number on claims, so those who applied after this date won’t be affected. It’s estimated that tens of thousands of people are owed around £5,000 worth of back payments.
The DWP has confirmed that personal representatives are allowed to make claims on behalf of deceased individuals. To learn more about who is eligible and how to make a claim, visit the HRP page on GOV.UK.
HMRC and DWP are conducting a larger campaign in the interest of making sure that everyone who might qualify is informed about the rectifications.
Checking NI Records Before HRP Review
Individuals will be asked if their National Insurance records have any gaps before the HRP check begins. If someone cannot locate their National Insurance record online or is unsure about any of the questions, they can select 'Do not know,' and they will receive guidance on how to find the information they need.
Eligibility Criteria for Applying for HRP Tool
In case any of the following criteria were achieved, individuals might still be eligible to apply for HRP for the entire tax years (6 April–5 April) between 1978 and 2010:
- They claimed child benefit for a child under 16.
- They cared for a child with their partner, who claimed Child Benefit instead of them.
- They got income support because they were caring for a sick or disabled person.
- They cared for a sick or disabled person who was on certain benefits.
Additionally, individuals can apply if, during the course of a full tax year between 2003 and 2010, they were either:
- A foster carer.
- Taking care for a friend or family member’s child (‘kinship carer’) in Scotland.