The UK Government has announced a significant one-time payment of £5,000 for approximately 210,000 senior women who were underpaid their state pensions due to missing National Insurance Credits and Home Responsibilities Protection (HRP).
This initiative is aimed at rectifying past administrative errors that impacted these pensioners.
This article provides detailed information about the eligibility, payment dates, and other important updates regarding the £5,000 HMRC payment.
£5,000 HMRC Payment for 210,000 Seniors
Overview
The HM Revenue and Customs (HMRC) is addressing the issue of missing HRP credits, which affected the National Insurance records of senior women who claimed child benefits between 1978 and 2000.
These credits were intended to protect the state pension entitlements of parents and carers who took time off work to raise children or care for others.
Due to administrative errors, many women did not receive the credits, leading to underpaid state pensions. The DWP is working with HMRC to identify and compensate those affected.
Payment Details
- Total Number of Seniors Affected: Approximately 210,000
- Total Estimated Payment Amount: £1.3 billion
- Average Payment per Senior: £5,000
The compensation will be provided as a lump sum payment. Women in their 60s and 70s will be among the first to receive notifications and payments.
Eligibility Criteria
To be eligible for the £5,000 HMRC payment, claimants must meet the following criteria:
- Child Benefit Claims: The individual must have claimed child benefits between 1978 and 2000.
- National Insurance Contributions: The individual must have paid the maximum class 1 National Insurance liabilities of up to £100,000.
- Name on Benefits: The child benefits must have been claimed in the individual’s own name, not their partner’s.
- Age of Children: The child for whom benefits were claimed must have been aged 16 or younger.
- No Reduced Stamp: The claimant must not have paid the reduced stamp for married women.
Checking Eligibility
Individuals who suspect they were underpaid should check their National Insurance (NI) records and state pension entitlements. HRP or credits should be displayed on NI records for those who reached state pension age after April 5, 2010.
Payment Dates and Process
Notification and Processing
The DWP and HMRC began notifying affected individuals in late 2023, with processing starting in early 2024. The rectification process includes updating HRP credits on NI records from 1978 to 2010. Although exact payment dates have not been announced, the correction process is expected to take up to 18 months.
Payment Distribution
- Alive Claimants: Estimated payment of £5,000 each.
- Deceased Claimants: An estimated average payment of £3,000 will be provided to their estates.
How to Verify and Claim
Verifying Underpayment
To determine if you were underpaid:
- Review Records: Check state pension and NI records for any missing HRP credits.
- For those reaching state pension age after April 5, 2010, credits should be visible as complete years on the record.
- Online Checker: Use the online tool provided by the UK government to verify HRP credits.
- Contact Helpline: Call the National Insurance Helpline for assistance in checking HRP on NI records.
Claim Process
- Form Submission: Fill out the CF411 form to claim missing HRP credits.
- Documentation: Provide necessary documentation to prove eligibility.
- Follow-Up: Stay updated through official government channels and the HMRC website for the latest information on payments.
Latest Updates
Correction Campaign
HMRC has initiated a correction campaign to address the unrecorded HRP credits. Affected pensioners will receive notification letters, often referred to as “brown envelopes,” informing them about potential underpayments and the availability of paybacks.
Government Response
The government acknowledges the significant oversight and is committed to ensuring that affected individuals receive their rightful compensation.
The process includes systematic rectification to prevent future errors and ensure accurate record-keeping.
The £5,000 HMRC payment aims to correct historical underpayments and provide financial relief to affected senior women.
By understanding the eligibility criteria, checking your records, and staying informed through official channels, eligible individuals can ensure they receive the compensation they are entitled to.
FAQs
Who is eligible for the £5,000 HMRC payment?
Women who claimed child benefits between 1978 and 2000, have less than £100,000 in National Insurance liabilities, and meet other specific criteria are eligible.
How much will each eligible individual receive?
Eligible individuals will receive an average payment of £5,000.
How can I check if I am eligible for the payment?
Review your state pension and NI records, use the online checker tool, or contact the National Insurance Helpline.
When will the payments be made?
While exact dates are not announced, the process is expected to take up to 18 months, starting from early 2024.
What should I do if I believe I am underpaid?
Submit a CF411 form to claim missing HRP credits and ensure all required documentation is provided.
