HMRC urges pensioners to check entitlements

HMRC has sent out more than 370,000 letters to older individuals, primarily women, urging them to check their State Pension entitlements as they may be owed up to £8,000. This follows a review that identified underpayments for those who took time off work to care for children between 1978 and 2010. The letters address errors related to Home Responsibilities Protection (HRP), which was introduced in April 1978. HRP provided National Insurance (NI) credits to parents and carers, ensuring they did not lose out on State Pension entitlements while staying home with children. This system remained in place until April 2010, when it was replaced by NI Credits, now applicable until a child turns 12. The government’s review, conducted between January 2024 and September 2024, found that many women who had children during this period did not have HRP added to their NI accounts, leading to potential underpayments.

HMRC letters urge entitlements check

Those affected could receive back payments amounting to nearly £8,000. The letters advise recipients to examine their NI records for any non-qualifying years during their child-rearing period. Those who find gaps are encouraged to submit a claim for HRP. Not all cases will result in back payments, as some individuals may have already met the qualifying years for a full State Pension or may be receiving a higher pension inherited from a spouse. Individuals who do not have access to a computer can contact the NI helpline at 0300 200 3500 for assistance. This initiative aims to rectify pension underpayments and ensure that all eligible individuals receive the full amount they are entitled to. Image Credits: Photo by Money Knack on Unsplash