You could be owed money after plans to delete old pension records have raised fears that some underpaid pensioners could lose out.
State pensioners could be owed £8,377 each after DWP error
State pensioners could be owed £8,377 each after a Department for Work and Pensions, or DWP, error. You could be owed money after plans to delete old pension records have raised fears that some underpaid pensioners could lose out.
The error could impact people where gaps in National Insurance records were linked to Home Responsibilities Protection (HRP) credits. HRP was introduced to help parents and carers build up state pension entitlement while they were out of work and looking after children or disabled adults between 1978 and 2010.
However, in many cases, these credits were never properly recorded on people’s National Insurance records. It means some people, mostly women, may now be receiving less state pension than they should.
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In its previous annual report, the DWP estimated that around 194,000 people could be affected by the HRP error and set aside £1.15 billion to address the issue.
According to Which?, as of March 31 this year, 12,379 people had been repaid a total of £104 million, with an average repayment of £8,377.
Robson Laidler, a legal firm, said: “If HRP is missing from someone’s NI record, it does not necessarily mean that their State Pension calculation is wrong, but it could be, especially if they took significant time-out from employment to raise a family.”
The Exchequer Secretary to the Treasury has stated: “The State Pension is the foundation of state support for people in retirement. We are urging people to check their National Insurance records to make sure they will receive the pension they deserve.”
Robson Laidler said: “Unfortunately, HMRC delete child benefit claims after 5 years so they do not actually know who may be affected, they are contacting people who they think may be affected. Permanent Secretary, Peter Schofield has confirmed that the DWP has already paid out over £700m and that the team are making good progress, despite a slow rate of individuals approaching the department about this issue.
“We would therefore advise checking your own NI records rather than waiting for a letter from DWP/HMRC to arrive. There is no time limit for applying for HRP if it has not been awarded.
“Anyone who may have claimed Child Benefit before May 2000, when it was not mandatory to provide your National Insurance Number on your claim, may not have the correct number of years for State Pension purposes on their NI record, if you first made a claim after May 2000, you will not be affected.”