State pension alert: HMRC urges parents to check National Insurance record as thousands missing payments
Older people are finding themselves missing out on their full state pension entitlement
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Thousands of parents across the UK could be missing out on state pension payments they are entitled to, according to a recent warning from HM Revenue and Customs (HMRC).
The issue primarily affects those who claimed Child Benefit before 2000 and stems from gaps in their National Insurance records.
As part of Pensions Awareness Week, HMRC is urging tens of thousands of people to check their eligibility for a potential boost to their state pension.
The affected individuals are mainly women who are at or approaching state pension age.
This problem has arisen from the application of Home Responsibilities Protection (HRP) to National Insurance records between 1978 and 2000. This measure was designed to protect the state pension of those claiming Child Benefit during that period.
HRP reduced the number of qualifying years needed for a full basic State Pension for those with caring responsibilities. It was replaced by National Insurance credits in 2010.
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Those approaching retirement are being urged by HMRC to check their National Insurance record
GETTYHowever, if someone claimed Child Benefit before May 2000 without providing their National Insurance number, HRP may not have been applied correctly.
This oversight could have significantly affected their State Pension entitlement. HMRC and the Department for Work and Pensions (DWP) are now working together to identify those affected and encourage them to make a claim for HRP.
James Murray, Exchequer Secretary to the Treasury, said: "The State Pension is the foundation of state support for people in retirement. We are urging people to check their National Insurance records to make sure they will receive the pension they deserve."
HMRC has already written to 257,000 pensioners who could have HRP missing from their National Insurance record. The agency is now contacting those under State Pension age to encourage them to use their eligibility checker.
Emma Reynolds, the Minister for Pensions, emphasised the importance of households taking advantage of this initiative.
She explained: "The Government's priority is to ensure pensioners have security and dignity in retirement.
"I strongly encourage anyone who thinks they are missing out to check their eligibility and apply for Home Responsibilities Protection – taking just a few minutes out of your day now could mean a boost to your retirement."
Individuals can check their eligibility and make a claim on the GOV.UK website, which takes about 15 minutes to complete. Alternatively, claims can be made by post using form CF411.
HMRC stresses that customers do not need to wait for an official letter before making a claim. The process is straightforward and can potentially lead to a significant boost in retirement income.
It's important to note that missing HRP from a National Insurance record doesn't automatically mean the state pension calculation is incorrect. However, it does increase the possibility, especially for those who spent several years away from work to raise a family.
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The government says people will need to decide whether it’s better for you or the other parent to claim Child Benefit, as it can affect the state pension PEXELSThe issue primarily affects women who claimed Child Benefit before May 2000 without providing their National Insurance number.
This demographic is now being encouraged to check for discrepancies in their National Insurance record and top up their state pension for free online
For those who prefer traditional methods, claims can also be made by post using form CF411.
This simple step could potentially lead to a significant increase in retirement income for many parents, particularly women who took time away from work to care for their families.