Martin Lewis has issued a warning as parents could be owed thousands of pounds in backdated tax refunds following a blunder
Martin Lewis said an error meant many people are missing out on a full state pension(Image: ITV)
Martin Lewis has issued a critical alert to anyone who had children during a 32-year period, warning they could be entitled to more than £10,000 in backdated tax refunds due to an error.
The money-saving expert revealed that individuals might be eligible for significant compensation, citing one instance where a woman received a staggering £31,000.
Posting on X last month, Mr Lewis announced: “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 clarified: “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.”
Sharing a success story, he added: “Cilla emailed us, “I’ve just received 15yrs’ back pay from HMRC of £31,674 for underpayment of my pension. “”, reports Devon Live.
HMRC is using National Insurance (NI) records to identify as many individuals as possible who may have qualified for HRP between 1978 and 2010 but have no HRP recorded on their NI file, sending letters to some.
Accountants Robson Laidler have suggested that people could be owed approximately £5,000 in backdated payments on average. The Department for Work and Pensions (DWP) estimates it has short-changed pensioners between £300m and £1.5billion in state pension due to errors with Home Responsibilities Protection (HRP) recording.
HRP was a scheme established to protect parents’ and carers’ State Pension entitlements and was replaced by NI credits from April 6, 2010.
HMRC is examining National Insurance records to identify people who may have qualified for Home Responsibilities Protection (HRP) between 1978 and 2010 but don’t have it on their NI record, sending letters out as needed.
A spokesperson from Robson Laidler said: “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 declared: “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.
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“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.”
Could Your State Pension Be Affected by a Missing HRP Record?
The lack of HRP on someone’s NI record doesn’t necessarily mean an incorrect State Pension calculation; nevertheless, it could impact those who took substantial career breaks to look after children. The Exchequer Secretary to the Treasury has stressed the significance of the State Pension, declaring: “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 representative from Robson Laidler underlined the necessity for individuals to actively verify their National Insurance (NI) contributions, explaining: “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 identified a potential concern for those who applied for Child Benefit before a specific 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.”
How to Check and Apply.
Prior to beginning the online HRP verification, you will be asked whether you have gaps in your National Insurance record.
If you are unable to locate your National Insurance record online or are unsure about any of the questions, you can select ‘Do not know’ and you’ll be informed how to obtain this information. If you need to apply for HRP, or if you believe your record is incorrect, you should complete form CF411 ‘application form Home Responsibilities Protection (HRP)’.
For further information or advice about your HRP application, you should contact HMRC here.
Eligibility.
You may still be eligible to apply for HRP if, for full tax years (6 April to 5 April) between 1978 and 2010, you were either:
- sharing the care of a child under 16 with a partner you lived with and they claimed Child Benefit instead of you – you may be able to transfer their HRP
- caring for a sick or disabled person
You can also apply if, for a full tax year between 2003 and 2010, you were either:
- a foster carer
- caring for a friend or family member’s child (‘kinship carer’) in Scotland
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.