Brits who had kids before 2000 may be missing out on state pension payments
HM Revenue and Customs (HMRC) has issued a warning to Brits who may not be receiving the full state pension payments they are entitled to, particularly those who had children before 2000. As part of Pensions Awareness Week, HMRC is reaching out to tens of thousands of Brits who may be missing out on a significant boost to their retirement income due to a glitch in the benefits system.
This issue could mean they're missing the Home Responsibilities Protection on their National Insurance record. The amount of state pension you receive under the new system is based on the number of qualifying years you have.
For most, this will be one full year of paying National Insurance contributions, but there are other ways to accrue qualifying years, including voluntary contributions and National Insurance credits associated with certain benefits such as Child Benefit. However, some retirees who were parents around the turn of the century weren't required to provide the right information to claim this entitlement.
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HMRC is urging anyone who claimed Child Benefit between 1978 and 2000 to double-check their National Insurance record, as they should have received Home Responsibilities Protection instead of National Insurance credits. But if you didn't provide your NI number on the claim, this might not have been applied at all.
You could be at risk of significant gaps in your National Insurance record, which may lead to receiving a reduced state pension or potentially none at all, reports the Express.
The department has clarified that missing Home Responsibilities Protection "doesn't automatically mean their State Pension calculation is incorrect", but it's likely that years spent raising a family have significantly affected your retirement savings.
HMRC and the DWP are actively identifying the tens of thousands who are impacted and encouraging them to claim HRP to amend their records. However, UK residents can check their eligibility and claim HRP themselves, which takes about 15 minutes on the gov.uk website or by sending form CF411 by post.
With the HMRC app, you can easily check your National Insurance record online. If your HRP claim is successful, the DWP will update your record, potentially boosting or preserving your current state pension entitlement.
Additionally, some individuals who are already beyond the state pension age may be eligible for back payments.