Last week, HM Revenue and Customs (HMRC) announced that it will start writing to thousands of older people this autumn who may have been underpaid their State Pension due to missing information on their National Insurance (NI) record
Last week, HM Revenue and Customs announced that it will start writing to thousands of older people this autumn who may have been underpaid their State Pension due to missing information on their National Insurance record. The issue affects mostly women in their 60s and 70s who may have Home Responsibilities Protection missing from their NI record.
However, NI records are not available for all those affected as Child Benefit records are deleted five years after the claim ends. The DWP and HMRC are working together to find people affected and correct their records so they receive the right amount of State Pension. The National Audit Office , which scrutinises public spending for Parliament, said it is estimated that 210,000 people have been underpaid £1.3billion of State Pension due to historical issues relating to HRP.
Top Money Stories Today Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, warns that it’s going to be a ‘long process’ and ‘many people face significant waits before receiving what they are due’. She continued: “HMRC is to start contacting those potentially affected in the autumn but given the experience of other groups affected by underpayments we know it’s going to be a long process and many people face significant waits before receiving what they are due.
Sir Steve Webb, a former pensions minister who is now a partner at LCP said: “Missing out on protection for time at home with children could make a huge difference to a mother’s pension entitlement, and lump sum payments of arrears could run into many thousands of pounds for those who are affected.Sir Steve added: “The scale of these errors is huge. It is shocking that so many women have been underpaid so much money. This makes it essential that things are put right as a matter of urgency.
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