The UK government has recently announced a significant payment of £5,000 for about 210,000 seniors. This payment comes as a result of errors related to missing National Insurance (NI) credits for those who claimed child benefits between 1978 and 2000. The issue, which left many pensioners underpaid, is being addressed by HM Revenue and Customs (HMRC) in collaboration with the Department for Work and Pensions (DWP). Here’s everything you need to know about this payment, who is eligible, and how it will be distributed.
£5,000 HMRC Payment for 210,000 Seniors
HMRC has started reaching out to senior women whose NI records were affected due to missing Home Responsibilities Protection (HRP) credits. These credits were meant to help those who took time off work to care for children or elderly relatives, ensuring their NI contributions were still recorded. Unfortunately, many of these credits were not properly recorded, leading to lower state pensions for the affected individuals.
There are about 210,000 seniors who are owed a total of £1.3 billion, which averages out to about £5,000 per person. The first letters have already been sent to seniors in their 60s and 70s, informing them of their potential payment. According to the DWP, the average payment will be £5,000 for those still alive and £3,000 for the families of those who have passed away.
Eligibility for the £5,000 HMRC Payment
To be eligible for this payment, the following criteria must be met:
- National Insurance Contributions: The maximum Class 1 NI liabilities must be £100,000.
- Child Benefit Claims: The child benefit must have been claimed in the claimant’s name, not their partner’s.
- Child’s Age: The child must have been 16 or younger.
- No Reduced Stamp: The claimant should not have paid the reduced stamp as a married woman.
If you think you may have been underpaid, it’s important to check your NI records and state pension entitlements. If you reached the state pension age after April 5, 2010, your NI record should display any HRP or credits for complete years.
Payment Dates and Process
Although HMRC has informed around 210,000 seniors about the payment, the exact dates for when the payments will be made have not been announced. However, HMRC and DWP are working together to correct these errors over the next 18 months. This is a significant task, and they aim to ensure that the errors won’t happen again in the future.
Latest Updates on the £5,000 HMRC Payment
HMRC has begun a correction campaign to fix the unrecorded HRP credits issue that led to the underpayment of pensions. Affected pensioners have started receiving notifications about these underpayments and the possibility of getting paybacks.
The DWP learned about the missing state pension increases in late 2023, and the correction process started in early 2024. This process will make sure that all HRP credits from 1978 to 2010 are added to the NI records of those affected, ensuring that they receive the money they are owed.
What You Need to Know
The underpayment issue mainly affected senior women who claimed child benefits between 1978 and 2000 without providing an NI number on their claim forms. This mistake caused their HRP credits not to appear on their NI records, leading to lower pensions. HMRC has now taken steps to rectify this issue, ensuring that the affected individuals get the payments they deserve.
If you think you might be underpaid, here’s what you should do:
- Review Your Records: Check your state pension and NI records. If you reached pension age after April 5, 2010, your record should show any credit year as a complete year. If not, it means credits are missing.
- Use Online Tools: The UK government provides an online checker tool to help you review your records.
- Contact Helpline: Reach out to the National Insurance Helpline to check HRP on your NI records.
- Claim Missing Credits: If you find missing credits, fill out Form CF411 to claim them.
- Stay Updated: Regularly check the official UK government website for the latest information.
The £5,000 HMRC payment is a crucial step in correcting the underpayment of pensions for many seniors. This effort highlights the importance of ensuring that all records are accurate, so individuals receive the benefits they deserve. If you or someone you know might be eligible for this payment, make sure to check your records and stay informed through official channels. It’s essential to act now to ensure you don’t miss out on the payment you’re owed.
Who is eligible for the £5,000 HMRC payment?
Senior women who claimed child benefits between 1978 and 2000 and were missing HRP credits on their NI records.
How much money will I receive?
The average payment is £5,000 for living pensioners and £3,000 for the families of deceased individuals.
How can I check if I’m underpaid?
Review your state pension and NI records or use the online checker tool provided by the UK government.
What should I do if I’m missing credits?
Contact the National Insurance Helpline or fill out Form CF411 to claim missing HRP credits.
When will the payments be made?
The exact dates haven’t been announced, but HMRC is working with DWP to resolve the issue over the next 18 months.
