HM Revenue and Customs (HMRC) is raising the alarm as numerous Brits are not receiving the state pension payments they are entitled to, particularly those who had children before 2000.
In recognition of Pensions Awareness Week, HMRC is reaching out to the tens of thousands of Brits who aren’t receiving their full state pension entitlement or may be missing out on a significant boost to their retirement income.
This shortfall is due to a glitch in the benefits system that could mean they’re missing the Home Responsibilities Protection on their National Insurance record.
The amount of state pension you receive under the new system is based on the number of qualifying years you have.
For most, this will be one full year of paying National Insurance contributions, but there are other ways to accrue qualifying years, including voluntary contributions and National Insurance credits associated with certain benefits such as Child Benefit.
This is where the problem arises for some retirees who were parents around the turn of the century as they weren’t required to provide the right information to claim this entitlement.
HMRC is encouraging anyone who claimed Child Benefit between 1978 and 2000 to double-check their National Insurance record, as they should have received Home Responsibilities Protection instead of National Insurance credits.
However, if you didn’t provide your NI number on the claim, this might not have been applied at all.
As a result, you could face significant gaps in your National Insurance record, resulting in receiving considerably less or potentially no state pension at all.
The department has pointed out that missing the Home Responsibilities Protection “doesn’t automatically mean their State Pension calculation is incorrect”, yet it’s highly probable that the years dedicated to raising a family have markedly diminished your retirement prospects.
HMRC and the DWP are diligently working to pinpoint the tens of thousands affected and urge them to stake a claim for HRP to correct their records. Nonetheless, British citizens can verify eligibility and claim HRP on their own through a procedure that’s about a 15-minute affair on the gov.uk website or by submitting form CF411 via post.
By using the HMRC app, you can review your National Insurance record online. In case of a successful HRP claim, DWP will update your record, which could enhance or maintain your current state pension entitlement.
Moreover, certain individuals already past the state pension age might qualify for payments in arrears.
