Rachel Reeves affirmations on ‘we will focus on pensions’
This year signifies a potential windfall for scores of older women, who are set to get direct communication from HM Revenue and Customs regarding their National Insurance (NI) records. These notifications will signal possible gaps in their Home Responsibilities Protection (HRP) periods, which could have adversely affected their entitlement to the Basic or New State Pension.
Almost a year has passed since the Treasury started dispatching these letters, and they are partnering with the Department for Work and Pensions (DWP) to quickly correct these administrative oversights.
With an estimated sum of £1.5 billion earmarked for underpayments, approximately 210,000 elder citizens—primarily women—are due to receive their share of around £5,000 each.
Individuals affected by these missteps are likely to get their back payments by the close of next year. Further, the DWP has announced that letters are being sent primarily to those closest to State Pension age in their 60s and 70s. Those who suspect they may have been affected can run an online check using the self-identification tool at GOV.UK.
The DWP‘s estimates reveal that the department underpaid between £300 million and £1.5 billion of State Pension due to errors in recording HRP. Designed to protect parents’ and carers’ entitlement to the State Pension, the HRP was replaced by NI credits from April 6, 2010, according to The Daily Record.
HMRC is using NI records to identify as many individuals as possible who might have been entitled to HRP between 1978 and 2010 and do not currently have HRP reflected on their NI record.
The campaign to identify the individuals impacted has been in progress for nearly a year (Image: Getty)
How to navigate the online HRP tool
Upon initiating the HRP check, you will be prompted to provide information about any gaps in your National Insurance record. If you’re unable to locate your National Insurance record online or don’t know the answers to any of the questions, selecting ‘Do not know’ will provide guidance on how to obtain this information.
Primarily elder women stand to share the entitlement (Image: Getty)
If you suspect you might be eligible for HRP due to caregiving responsibilities between 2003 and 2010, or because you fostered or cared for a child in Scotland, there are conditions to be met for you to benefit:
- Not being in paid employment
- Not earning enough to qualify for the State Pension during a tax year
The complete guide for HRP can be found on the GOV.UK website. It provides a comprehensive understanding of the conditions and processes needed to secure this valuable financial aid.
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