\n The payments from from HM Revenue and Customs (HMRC) are aimed at low earners who lost out due to the type of workplace pension scheme used by their employer.\n<\/p>\n
\n Around 990,000 women across the UK are expected to benefit from the scheme, which compensates those affected by a technical issue involving net pay arrangement schemes.\n<\/p>\n
\n HMRC will write to people over the next few months, explaining how to receive the payment.\n<\/p>\n
What is in the letter?<\/p>\n
\n When you contribute to a pension, the government gives tax relief, meaning some money that would otherwise go to tax is added to your pension pot instead.\n<\/p>\n
\n For technical reasons, some low-paid workers in workplace pensions using a net pay arrangement received less tax relief than people in schemes using relief at source.\n<\/p>\n
\n Employees cannot choose which type of pension arrangement their employer uses.\n<\/p>\n
\n To address the difference, the government introduced a low earners\u2019 pension payment to compensate eligible people who missed out.\n<\/p>\n
\n Those receiving the letter do not need to apply for the low earner\u2019s pension payment; they will receive a letter to their home or via an online account.\n<\/p>\n
\n Most people affected typically earned close to, but not more than, \u00a312,570 a year and missed out on tax relief because of the way their employer\u2019s pension scheme was set up.\n<\/p>\n
\n While the average payment is expected to be around \u00a370, the actual amount will vary depending on individual circumstances.\n<\/p>\n
How to check it isn’t a scam<\/p>\n
\n Eligible individuals will be contacted directly by HMRC, either by letter or through their online personal tax account.\n<\/p>\n
\n HMRC will not contact people about this payment by text, email, or phone and any such messages should be treated as scams.\n<\/p>\n
\n Steve Webb, partner at pensions consultancy LCP and a former pensions minister, said: “The process of getting these payments to the right people is going to be incredibly painful and there is a real risk of huge non-take-up.\n<\/p>\n
\n “It is vital that communications are effective to make sure that people get the money to which they are entitled.”\n<\/p>\n
\n HMRC says it will run an awareness campaign using social media and other channels.<\/p>\n","protected":false},"excerpt":{"rendered":"The payments from from HM Revenue and Customs (HMRC) are aimed at low earners who lost out due…\n","protected":false},"author":2,"featured_media":763557,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,56,54,55],"class_list":["post-763556","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/763556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=763556"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/763556\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/763557"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=763556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=763556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=763556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}