MARTIN Lewis’ MSE has issued a “don’t litter” warning to thousands who could be owed thousands of pounds.
It came after an estimated 210,000 people lost the money they were entitled to during retirement.
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The DWP estimates that those affected are owed £1.3 billionCredit: Tom Stockill
The error, which was first discovered last year, shows that 150,000 are still alive and about 60,000 are now dead.
The MoneySavingExpert.com team said: “HMRC has started writing to 100,000 people – mostly women – who took leave from work to care for children between 1978 and 2010, as they may lack protection against household responsibilities that could increase their State pension.
“This is not a scam, so please do not ignore the letter.”
The DWP estimates that those affected are owed £1.3 billion.
This means that the average amount owed is £5,000 each.
Those who claimed Child Benefit, mostly women, before May 2000 are affected as they may have gaps in their National Insurance (NI) record, which in turn affects the amount of their State Pension.
The amount of State Pension someone gets is based on their NI contributions and the number of “years of service” they have.
From 1978 to 2010, protection was provided to parents to avoid these gaps through a system known as Home Responsibility Protection (HRP) credits.
This system was then replaced in 2010 by the one we have now, which is called NI credits.
If someone applied for Child Benefit before May 2000 and did not put their NI number on the form, it is possible that their credits may not have been transferred to their NI account from the Child Benefit calculator.
This can affect their pension rights, with women now in their 60s and 70s most likely to be affected.
The DWP has now started sending letters to thousands of people who may have been entitled to HRP between 1978 and 2010 but do not have HRP on their NI records.
Several hundred thousand letters are expected to be sent to those affected over the next 18 months.
Where errors are found, the NI records will be corrected and the DWP will then recalculate state pensions and pay the arrears.
This could result in an increase in pension payments, as well as a lump sum payment.
What should I do now?
Anyone who has received Child Benefit since 1978 should check their NI records.
If a payment is missing, there is a form that can be filled out to add the information to your records.
It’s called form CF411 and can be found on the government’s website.
You can also contact the HMRC National Insurance helpline for a claim form.
Your state pension will then be automatically recalculated and the arrears will be paid.
You can still apply for HRP if, for all tax years (April to April) between 1978 and 2010, you were:
- Sharing the care of a child under the age of 16 with your cohabiting partner who claimed child benefit for you
- Care of sick or disabled persons
Any HRP you had before 6 April 2010 has been converted into National Insurance credits.
You must reach state pension age on or after 6 April for these credits to go towards your pension.
Explanation of Home Responsibility Protection (HRP).
The HRP was a state pension protection scheme for parents and carers.
National Insurance credits replaced HRP in 2010.
Most people automatically got HRP if they were receiving Child Benefit in their name for a child under 16 and gave the Child Benefit office their National Insurance number.
If you think you may be eligible but have questions, you can contact the Pensions Service via the gov.uk website or by calling 0800 731 0469.
Categories: Optical Illusion
Source: HIS Education