Great news for many women in their 60s and 70s! By the end of this year, thousands will receive up to £5,000 in back payments on their State Pension. This article breaks down everything you need to know about this windfall, including eligibility, how to claim, and payment dates.
State Pension £5,000 Back Payment Coming in UK
The Department for Work and Pensions (DWP) has acknowledged significant underpayments in State Pensions due to past errors in recording Home Responsibilities Protection (HRP) and Universal Credit National Insurance (NI) contributions.
HRP, which ran from 1978 to 2010, aimed to safeguard pension rights for parents and caregivers but had recording issues that led to these underpayments.
Eligibility
HM Revenue and Customs (HMRC) is identifying individuals who missed out on HRP credits between 1978 and 2010.
The current effort targets approximately 187,000 cases, with an estimated £1.043 billion in total underpayments.
Who is eligible?
- Women who were parents or caregivers during the HRP period.
- Those whose records don’t accurately reflect their entitlements due to NI record discrepancies.
How to Claim
Wondering if you’re owed money? Here’s how to find out:
- Contact the Pension Service: Call 0800 731 0469 for personalized assistance.
- Check GOV.UK: The official government portal has detailed information on eligibility and claiming procedures.
- Monitor DWP Updates: Keep an eye on the DWP’s Annual Reports and Accounts for the latest progress on these corrections.
If you believe you’ve been underpaid, it’s crucial to reach out promptly to ensure your case is reviewed.
Payment Dates
The DWP aims to complete the correction process by the end of 2025. Here’s the timeline:
- Late 2023: HMRC began notifying potentially affected individuals.
- Early 2024: DWP starts processing cases identified by HMRC.
The payments will vary, with an average of £5,000 for living retirees and around £3,000 for deceased individuals’ estates. This reflects the scale of past errors and the DWP’s commitment to correcting them.
Impact
This correction affects a significant number of the 12.7 million people currently receiving state pensions in Great Britain. The basic state pension is up to £169.50 weekly, and the new state pension can reach £221.20 weekly. These payments are crucial for financial stability in retirement.
The DWP’s initiative to correct pension underpayments is a step towards ensuring fairness and financial security for affected retirees. If you’re eligible, make sure to claim your entitlement and stay informed about the progress of these corrections.
FAQs
Who is eligible for the back payment?
Women affected by HRP recording errors between 1978-2010.
How do I check if I’m eligible?
Contact the Pension Service at 0800 731 0469 or visit GOV.UK.
When will the payments be made?
Payments are expected to be completed by the end of 2025.
What is the average back payment amount?
Approximately £5,000 for living retirees, £3,000 for deceased estates.
How can I stay updated on the payment process?
Follow DWP’s Annual Reports and Accounts for updates.
