The money-saving expert has shared that a state pension error means many parents who ‘could be owed £10,000s’Martin Lewis says people may be due over £10,000 in backdated tax repayments(Image: ITV)
Martin Lewis has issued an urgent warning to anyone who welcomed children during a 32-year timeframe as they may be due over £10,000 in backdated tax repayments following a state pension blunder. The financial guru disclosed that people might qualify for substantial recompense, highlighting one case where a lady pocketed an eye-watering £31,000.
Taking to X earlier today, Mr Lewis declared: “State Pension error! Did you take time off work (1978 to 2010) to look after children or someone with long term disability? You could be owed £10,000s.”
He explained: “In brief: 100,000s wrongly have Nat Insurance gaps that reduce your State Pension as they should’ve got ‘Home Responsibilities Protection’. The Govt was contacting people, but isn’t any longer. Thus the onus is on YOU to proactively check.”
Highlighting a triumph tale, he continued: “Cilla emailed us, “I’ve just received 15yrs’ back pay from HMRC of £31,674 for underpayment of my pension,” reports the Express.
HMRC is utilising National Insurance (NI) records to pinpoint as many people as feasible who may have been entitled to HRP between 1978 and 2010 but lack HRP documentation on their NI file, dispatching correspondence to some. Financial experts at Robson Laidler have indicated that individuals could be entitled to roughly £5,000 in retrospective payments on average.
The Department for Work and Pensions (DWP) calculates it has underpaid pensioners between £300m and £1.5billion in state pension owing to mistakes with Home Responsibilities Protection (HRP) records. HRP was a programme created to safeguard parents’ and carers’ State Pension rights and was superseded by NI credits from April 6, 2010.
HMRC is scrutinising National Insurance files to pinpoint individuals who may have been entitled to Home Responsibilities Protection (HRP) between 1978 and 2010 but lack this documentation on their NI record, dispatching correspondence where relevant. A representative from Robson Laidler remarked: “It is estimated tens of thousands of people are due an average of £5,000 in back payments. HMRC and DWP are also conducting a wider campaign to ensure that everyone who may be eligible is aware of the corrections exercise.”
HM Revenue and Customs has announced: “HMRC will send you a letter if we think you may have missing Home Responsibilities Protection (HRP). We want to help you make sure you receive the right amount of State Pension, so we’re asking you to check if you were eligible for HRP between 1978 and 2010. You may have been eligible if you received Child Benefit for a child under 16. The letter will tell you how you can check if you’re eligible to claim missing Home Responsibilities Protection and how to make a claim.”
The absence of Home Responsibilities Protection (HRP) on an individual’s National Insurance (NI) record doesn’t automatically equate to a miscalculated State Pension; however, it could influence those who took significant breaks from their careers for childcare responsibilities. The Exchequer Secretary to the Treasury highlighted the importance of the State Pension, stating: “The State Pension is the foundation of state support for people in retirement. We are urging people to check their National Insurance records to make sure they will receive the pension they deserve.”
A spokesperson from Robson Laidler emphasised the importance of proactively checking one’s NI contributions, advising: “We would therefore advise checking your own NI records rather than waiting for a letter from DWP/HMRC to arrive. There is no time limit for applying for HRP if it has not been awarded.”
They also pointed out a potential issue for individuals who claimed Child Benefit prior to a certain date: “Anyone who may have claimed Child Benefit before May 2000, when it was not mandatory to provide your National Insurance Number on your claim, may not have the correct number of years for State Pension purposes on their NI record, if you first made a claim after May 2000, you will not be affected.”
Instructions for Verification and Application Submission
Before you initiate the online process for HRP verification, you’ll be asked if there are any gaps in your National Insurance record.
If you’re struggling to find your National Insurance record online or are unsure about any of the questions, you can select ‘Do not know’ and you’ll be provided with guidance on how to obtain this information. If you need to apply for HRP, or if you think your record is incorrect, you should fill out form CF411 ‘application form Home Responsibilities Protection (HRP)’.
For additional information or advice regarding your HRP application, you can contact HMRC here.
Eligibility
You might still be eligible for HRP if, for full tax years (6 April to 5 April) between 1978 and 2010, you were either:.
You can also apply if, for a full tax year between 2003 and 2010, you were either:.
If you reached State Pension age on or after 6 April 2010.
Any HRP you had for full tax years before 6 April 2010 was automatically converted into National Insurance credits, if you needed them, up to a maximum of 22 qualifying years.