Could you get a pension back payment of £8,000? Find out the eligibility, reasons and how to claim
Thousands of women in the UK could be getting a huge amount of money in state pensions that they missed out on for years. The reason is administrative errors linked to the Home Responsibility Protection (HRP) scheme. If you took a break from work to look after your children before 2000, pension credits may not have been added correctly to your National Insurance (NI) record, and you may not have realised it.
In this guide we’ll explain what the issue is, how it could affect you, and how you can check if you can get a back payment of up to £8,000. Let’s take it step by step.
Background – why is this back payment being given?
This lump sum payment is being given to people who have received less of their state pension due to previous mistakes. In this case, HRP credits not being properly added to the record is the main cause of the problem.
If you left work to look after your children, you should have received HRP credits to avoid a gap in your National Insurance Contributions. But before 2000, many people claimed Child Benefit but did not have their NI number recorded. This resulted in the credits not being added to their record and their pension being reduced.
Why are HRP credits important?
HRP was created specifically for parents and carers who left work to look after their children or a family member.
- Before 2000, many parents were claiming Child Benefit but did not register their National Insurance number.
- This had a direct impact on their state pension, as a gap in their NI record reduced their pension.
- Now the government is correcting this mistake, and such people can be given back up to £8,000.
The impact – how much money can you get?
- According to the government review, on average, every person can get up to £8,000.
- In some cases this amount has also reached £17,000.
- This is not just a small amount, but can prove to be a life-changing payment for many pensioners.
Who are the people affected?
Most of the affected people are those who:
- Are women born between 1953 and 1960.
- Claimed child benefit before 2000.
- Failed to include their National Insurance number in the child benefit form.
- Now they are getting less pension from the government, which should have actually been more.
If you’re on this list, you could be due thousands of pounds in back payments!
How is the Government fixing it?
The DWP (Department for Work and Pensions) and HMRC (HM Revenue and Customs) are working together to fix the problem. They are:
- Reviewing old records to identify who missed out on HRP credits.
- Contacting affected people by post.
- Providing online tools so people can check for themselves whether they’ve been short-paid in their pension.
- Issuing back payments to people who were short-paid.
How do you know if you’re eligible for this back payment?
1. Check your National Insurance record
You can check your NI contributions information by visiting the government’s official website:
Look at the years in your record when you were caring for your children. If there are any gaps, you may not have received HRP credit.
2. Use the government’s tool to check HRP
You can check if your pension was underpaid by following the link below:
Follow the on-screen steps to see if you can get any back payments.
3. Contact the Pension Service
If you still have any doubts, you can contact the Pension Service. They will check your records and tell you if you can get any money.
- Get help by visiting the DWP helpline or www.gov.uk
Important tip: Keep your information safe
- Keep copies of all your documents, including child benefit records, National Insurance records, and government correspondence.
- If you disagree with a decision, you have the right to appeal.
- You can get help from the Citizens Advice Bureau.
What does it mean for retirement planning?
If your pension was wrongly reduced, it can have a big impact on your retirement life.
- Getting the right pension will make it easier to budget.
- You will have financial security and be able to meet essential expenses.
- Back payments can help pay off old debts.
Conclusion – check now and get your money!
Thousands of people may still be waiting for the money they are entitled to. Many people like Mrs Atkinson have found back payments of up to £17,000 – could you be next?
FAQs
What is this £8,000 pension back payment?
This payment is being made to women who were not able to receive the full pension they were entitled to due to administrative mistakes related to Home Responsibility Protection (HRP) under the State Pension.
Why did this problem occur?
Before the year 2000, many women claimed child benefit but did not register their National Insurance number. This caused their HRP credit to not be added to their pension record, leading to a shortfall in pension.
How much money can be recovered on average?
According to the government, the affected women can get an average of £8,000.
6. If I am eligible, when will I receive the money?
The government is reviewing old records, and eligible people will be contacted by post.