Great news for many women in their 60s and 70s in the UK: a £5,000 State Pension back payment is coming their way by the end of this calendar year.
This payment is part of an effort by the Department for Work and Pensions (DWP) to correct historical underpayments related to Home Responsibilities Protection (HRP) and Universal Credit National Insurance (NI) records.
Here’s everything you need to know about eligibility, how to claim, and the payment dates.
Contents
£5,000 State Pension Back Payment Coming
Background
The DWP has confirmed that significant payments are being issued to women who were underpaid their State Pensions. This is due to issues with HRP and Universal Credit NI records.
HRP was introduced in 1978 to protect the State Pension entitlements of carers and parents, and it was replaced by NI credits in April 2010. However, discrepancies in records have led to underpayments.
Eligibility
Who Is Eligible?
The HM Revenue and Customs (HMRC) has identified individuals who may have been entitled to HRP between 1978 and 2010 but were not properly credited. The DWP Pension Minister Paul Maynard estimates around 187,000 cases have been affected, with a total underpayment of approximately £1.043 billion.
Key Criteria
- HRP Credits: Individuals who were entitled to HRP between 1978 and 2010 but did not receive the correct credits.
- Universal Credit NI Issues: Those affected by discrepancies in their NI records due to Universal Credit.
Identification Process
HMRC uses NI data to recognize candidates who may have been underpaid. This is crucial for ensuring eligible citizens receive their rightful State Pension payments.
How to Claim
Steps to Claim
- Contact the Pension Service: Call 0800 731 0469 to find out if you have been underpaid. They provide personalized assistance based on your circumstances.
- Visit GOV.UK: Check the official website for detailed contacts and additional resources. This includes information about State Pension entitlements, eligibility requirements, and the claims process.
- Monitor Updates: DWP publishes updates on the correction exercise in their Annual Reports and Accounts. Staying informed can provide further clarity on the status of the corrections.
Important Resources
- Pension Service Contact Number: 0800 731 0469
- Official Portal: Welcome to GOV.UK
Universal Credit Data
The DWP has also addressed Universal Credit data issues for impacted cases up to the fiscal year 2022/23. Any underpayment resulting from these corrections is being addressed as part of the ongoing process.
Payment Dates
Timeline for Payments
The DWP has committed to completing the correction exercise by the end of 2025. This timeline underscores the Government’s commitment to resolving the issue and providing timely relief to affected retirees.
Average Payments
- Current Pensioners: The average underpayment identified is around £5,000.
- Deceased Retirees: The average underpayment is around £3,000.
These payments are meant to rectify past errors and ensure that pensioners receive their rightful entitlements.
Correction Process
The process began with HMRC sending letters to potentially affected individuals in late 2023. The DWP started processing identified cases in early 2024, aiming to address each case promptly.
All We Know
Approximately 12.7 million people in Great Britain receive state pension benefits. This includes both the basic state pension, up to £169.50 per week, and the new state pension, up to £221.20 weekly. These payments are crucial for supporting retirees’ living expenses and financial stability.
Moving Forward
The DWP and HMRC are working diligently to correct NI records and address HRP errors. By staying informed and proactive, eligible individuals can ensure they receive the payments they are owed.
The £5,000 State Pension back payment is a significant step towards rectifying historical underpayments and providing financial relief to eligible women in their 60s and 70s. By understanding the eligibility criteria, how to claim, and keeping track of payment dates, affected individuals can ensure they receive their rightful entitlements.
FAQs
Who is eligible for the £5,000 back payment?
Women in their 60s and 70s affected by HRP or Universal Credit NI issues.
How do I find out if I am eligible?
Contact the Pension Service at 0800 731 0469 for guidance.
What is the average underpayment amount?
Around £5,000 for current pensioners, and £3,000 for deceased retirees.
When will the correction exercise be completed?
The DWP aims to complete it by the end of 2025.
Where can I get more information?
Visit the official portal at GOV.UK or contact the Pension Service.
