HMRC Alerts 370,000 Pensioners About Potential Back Payments

The UK’s HM Revenue and Customs (HMRC) has reached out to approximately 370,000 individuals regarding potential state pension back payments. These payments could amount to as much as £8,300 for those missing Home Responsibilities Protection (HRP) on their National Insurance records.

This initiative aims to ensure that pensioners are aware of the funds they may be entitled to due to historical errors in their National Insurance contributions. Consumer advocate Martin Lewis, the founder of Money Saving Expert, has encouraged the public to verify their eligibility for these payments, particularly as HMRC has ceased sending letters to those potentially affected.

Understanding the Home Responsibilities Protection Scheme

The Home Responsibilities Protection scheme was operational from 1978 to 2010. It was designed to allow individuals, especially those who were not employed due to childcare or caregiving duties, to still receive National Insurance credits. This is crucial for maintaining their state pension entitlement. Unfortunately, some individuals have found that HRP was not correctly recorded on their National Insurance records, leading to lower contributions and consequently reduced pension payments.

This oversight predominantly affects women who took time off work to raise children, but it can also impact anyone who provided care during this period. If individuals suspect their HRP is missing, they can apply to have it rectified through the Government website.

HMRC’s Commitment to Those Affected

In response to inquiries regarding their outreach efforts, a government spokesperson stated, “We’re determined to help people who’ve been left out of pocket due to historical errors which are no fault of their own.” The spokesperson confirmed that HMRC had contacted over 370,000 people and launched an online tool for individuals to check their eligibility for claims.

The spokesperson further explained what happens when HRP is added to an individual’s National Insurance record. “If someone has a period of HRP added as a result of an application, first HMRC will determine the number of years of National Insurance that should be added to their record. The Department for Work and Pensions (DWP) will then apply this to the individual’s state pension eligibility and determine the impact on their payments.”

For those who apply for HRP and disagree with the outcome, they are encouraged to contact HMRC regarding the number of years on their record or reach out to the DWP for issues related to state pension entitlements.

The campaign by HMRC highlights the importance of ensuring all eligible individuals receive the financial support they are entitled to, particularly as errors in historical records can have long-lasting effects on pension payments. As the government continues its outreach efforts, individuals are urged to take action and verify their records to avoid missing out on these significant payments.