DWP confirms £5,000 back payments to thousands of state pensioners - how to check if you're owed money
The Department for Work and Pensions (DWP) has embarked on a mission to issue back payments that could reach £5,000 to thousands who have been short-changed their state pension due to flaws with National Insurance (NI) and missing home responsibilities protection (HRP).
Wales Online reports that the HRP scheme aimed to guard the state pension entitlements of parents and carers but was replaced by NI in 2010.
The tax authority is now on a task to identify those who should have received HRP between 1978 and 2010 but did not have it added to their NI record. This oversight results in potential underpayment of their state pension.
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DWP Pensions Minister, Paul Maynard MP, has shed light on the eligibility criteria for back payments and how much recipients could get. He stated: "The central estimate was around 187,000 cases who may have an underpayment of state pension and for whom we expect to correct, with a total underpayment estimate of £1,043 million."
In response to Labour MP Dame Angela Eagle's inquiry about the average value of state pension underpayments, he further added: "The exercise to correct National Insurance records for those individuals impacted by errors in their HRP record is underway. The HRP corrections exercise started with HMRC dispatching letters in late 2023. Cases subsequently notified from HMRC started being processed in DWP in early 2024.", reports Cambridgeshire Live.
"In the Department's Annual Report and Accounts 2022-2023, the central estimate value of an underpayment was £5,000 for alive cases above state pension age and £3,000 for deceased cases. We intend to publish an update on the exercise in this year's annual report and accounts."
The Department for Work and Pensions (DWP) has confirmed that it has completed an exercise which identified a number of individuals entitled to State Pension underpayments.
Mr Maynard also stated that the DWP has rectified the universal credit data issue for the cases impacted up to and including the tax year 2022/2023.
He clarified: "This data has been shared with HMRC. As HMRC updates NI records, these updates are sent to DWP. Any State Pension entitlement will be reassessed, and any underpayment addressed accordingly."
How can I find out if I am owed money?
The average payment due to those owed money is estimated to be around £5,000. The DWP has previously indicated that it aims to complete the back payments before the end of 2025 and has begun distributing them.
The most effective way to determine if you have been underpaid your state pension and are owed money is to contact the pension service at 0800 731 0469. You can find out more on the Gov.uk website here.