Great news is coming for women in their 60s and 70s. By the end of the year, many will receive £5,000 in back payments from their State Pension. This money is being given to fix past mistakes where some people were underpaid. If this applies to you, it’s important to know how to claim your money and when you can expect to receive it.
Eligibility
The £5,000 back payment is meant for women who were underpaid due to problems with their Home Responsibilities Protection (HRP) and National Insurance (NI) records related to Universal Credit. HRP was introduced in 1978 to protect pension benefits for parents and caregivers, making sure their State Pension wasn’t unfairly reduced because they took time off work to care for others. This system was in place until 2010, when it was replaced by NI credits.
However, not all records were updated correctly during this change, leading to some people being underpaid. The Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) have identified around 187,000 cases where individuals were affected by these mistakes. If you were a parent or caregiver between 1978 and 2010, you might be eligible for these back payments.
How to Claim Your £5,000 Back Payment
If you think you might be owed a £5,000 back payment, the first thing to do is check if your State Pension was underpaid. You can do this by calling the Pension Service at 0800 731 0469. They’ll give you personalized advice based on your situation.
You can also visit the GOV.UK website for more details about State Pension entitlements, who qualifies, and how to claim your back payment if you’ve been underpaid. It’s a good idea to keep an eye on the DWP’s Annual Reports and Accounts for updates on how they’re fixing these issues.
If your underpayment is linked to Universal Credit, most errors have already been sorted out by the DWP up to the fiscal year 2022/23. Any remaining issues are being addressed as part of their ongoing correction process.
Payment Dates
Wondering when you’ll receive your back payment? The Department for Work and Pensions (DWP) aims to finish the payment corrections by the end of 2025. This is a big job since they need to review and fix National Insurance records for millions of people. On average, those affected might receive around £5,000, but the exact amount can vary based on your situation. For those who have passed away, their families can expect an average payment of about £3,000.
Though it might take some time, the government is dedicated to making sure everyone who qualifies gets what they’re owed. If you’re eligible, you should receive your payment by the end of this year.
All You Need to Know
Around 12.7 million people in Great Britain currently receive state pension benefits. These payments are essential for helping retirees cover their living costs and stay financially secure during retirement. The basic State Pension can provide up to £169.50 per week, while the new State Pension offers up to £221.20 per week.
To fix the HRP errors, HMRC started sending letters to those who might be affected in late 2023. After that, the DWP will begin processing these cases in early 2024. This step-by-step process is designed to make sure each case is carefully reviewed and corrected as quickly as possible.
If you think you might be eligible, reach out to the Pension Service or check the official government website for more details.
FAQs
Who can get the £5,000 back payment?
Women who had issues with HRP and their National Insurance records between 1978 and 2010.
How do I claim my underpaid State Pension?
Call the Pension Service at 0800 731 0469.
When will I get the back payment?
You should receive it by the end of this year or during the correction process, which could take until 2025.
What is the typical amount of the back payment?
The average payment is about £5,000.