Martin Lewis says DWP error from 20 years ago could see people owed thousands of pounds

Tens of thousands of people aged over 41 could be in line for compensation from the Department for Work and Pensions (DWP) following a common error from 20 years ago. A mistake filling out a form all those years ago could see some people missing out on thousands of pounds they are owed.

The error stems from a scheme intended to safeguard the pensions of those who paused their careers for caregiving duties, either for children or someone with a long-term illness. However, many may have inadvertently omitted their National Insurance number on a form, leading to their records not being properly updated. This seemingly minor oversight could result in significant financial losses later in life.

In his latest weekly newsletter, Martin Lewis highlighted: "This is about Home Responsibilities Protection (HRP) - a Govt system designed to protect the state pension for mainly mothers who chose to take time off work to look after their children or care for someone with a long-term medical condition/disability. 100,000s are likely to be owed £1,000s - if ALL the following apply."

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Those who might benefit from this scheme should be aged between 41 and 90, with the most affected group being between 60 and 80 years old, according to Lewis. Eligibility also requires having taken a career break to provide care between 1978 and 2010, and having initially claimed Child Benefit or Income Support before May 2000, reports the Manchester Evening News.

Hundreds of thousands have made the error of not entering their National Insurance number on their Child Benefit or Income Support form, Martin Lewis highlighted: "This is as the system was beset with errors, leaving many having gaps in their NI records that should be there. The Govt is now writing to those affected, so if you get a letter, DON'T ignore it, it can be worth £10,000s."

The government is currently reviewing its systems and reaching out to individuals impacted by this significant oversight. While awaiting contact, individuals also have the option to proactively reach out to HMRC to potentially reclaim thousands.

Martin relayed a success story from a viewer named Janet: "As Janet emailed me: 'Dear Martin, following your show [alerting people to the letter] I applied for HRP as I stayed at home after having my children. I have received £15,000+ in backdated arrears and my pension has increased by £44/wk. I have to pay income tax on the arrears, but still have a substantial amount in my bank thanks to you.'".