HMRC errors may lead to tens of thousands of older people missing out on state pension cash
Thousands of female pensioners are poised to miss out on state pension cash due to a Department for Work and Pensions blunder. Sir Steve Webb, the former Liberal Democrats pensions minister, has highlighted that errors by HMRC could result in tens of thousands of elderly individuals being deprived of their rightful state pension funds.
Law firm partner Webb has expressed concerns that an HMRC initiative to locate over 180,000 individuals who have not received national insurance credits while raising children is likely to be unsuccessful. The DWP has acknowledged that approximately 187,000 pensioners have been underpaid due to a NI confusion, reports Birmingham Live.
HMRC has already sent out upwards of 250,000 letters to those past pension age lacking Home Responsibilities Protection on their records, urging them to file a claim. Sir Steve, currently a partner at pension consultancy LCP, has voiced his objections.He remarked: "Whilst I understand the desire of Government departments to cut costs, it is completely inappropriate to write letters to hundreds of thousands of pensioners which suggest that the only way to apply is online.
He stated: "Unless HMRC addresses this issue it is highly likely that tens of thousands of older pensioners may continue to miss out on money which is rightfully theirs." Affected individuals could each be due an average of £5,000, with the DWP preparing to pay over £1 billion in arrears. The DWP also estimates that around 43,000 of the affected individuals have passed away, but their families will still be eligible to claim any outstanding amounts.
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