HMRC and DWP have sent over 370,000 letters to pensioners, primarily women, who have been affected by a miscalculation in their state pension.
On average, those impacted have received arrear payments of around £7,859.
The error was first identified in 2022 when the DWP noticed that certain categories of pensioners were not receiving their Home Responsibility Protection (HRP), a scheme designed to protect parents and carers unable to pay National Insurance due to their responsibilities.
Women in their 60s and 70s currently with adult children are reportedly the most likely to have been affected.
As part of the correction exercise by the DWP and HMRC, those affected should see their state pension payments revised and could receive backdated payments to cover the amounts they missed out on.
These payments are expected to be made by the end of this year. The letter will ask recipients to check if they were eligible for HRP between 1978 and 2010, such as if they received child benefit for a child under 16.
It will also explain how to check eligibility for missing HRP and how to make a claim. The DWP stated that those closest to the state pension age, in their 60s and 70s, will receive their letters first.
Those who believe they may be eligible but have not received a letter can use the self-identifying tool on Gov.uk.
This tool can indicate whether your HRP entitlement was accurately added to your state pension. According to the Daily Record, nearly 500,000 individuals have utilised the tool for verification.
However, as of the end of September, HMRC had only processed 37,289 applications from those over state pension age and 5,428 from those under state pension age.
Reportedly, the DWP has paid out £42million in arrears so far.
It initially estimated that between £300million and £1.5billion had been underpaid.
It’s important to note that just because you were missing HRP and your state pension was miscalculated doesn’t always entitle you to the backdated payments.
This is due to the possibility of you claiming other benefits, such as Pension Credit, which balanced your income to what you would have earned if the HRP had been correctly applied. More information on HRP can be found on Gov.uk.
