The underpayments affect mostly women on the Basic State Pension.
Thousands of women over State Pension age could be due backdated underpayments worth an average of around £6,552, before the end of this year. Some 12.6 million people are in receipt of the State Pension and it’s important to be aware the majority of payments are correct, but some people - mostly women - have received less than they should from the Department for Work and Pensions .
Reasons for State Pension underpayments There are three broad categories of State Pension underpayments: Married Widowed Over 80 State Pension underpayments - Home Responsibilities Protection The DWP estimates it underpaid between £300 million and £1.5 billion of State Pension because of errors with the recording of HRP.
After May 2000, it became mandatory to include a NI number on claims so people claiming after this point will not have been affected. It is estimated tens of thousands of people are due an average of £5,000 in back payments. National Insurance records are maintained by HMRC based on information from employers through PAYE, Self-Assessment tax returns from the self-employed and information provided by DWP on benefit receipt where that creates a National Insurance credit.
With the issues now resolved between the DWP and HMRC systems, claims data relating to the affected years can now be successfully processed by HMRC. When these records are updated information will be sent to the DWP who will then correct any State Pension awards that are affected.
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