- By Kevin Peachy
- cost of living correspondent
image source, Getty Images
The mothers may have been underpaid in the National Pension of around £1 billion due to missing information in their National Insurance (NI) records.
Since 1978, the system has included units for parents who have taken time off from work to care for their children.
Until 2010, this was known as Home Responsibility Protection (HRP), but may be missing from some NI records.
Those who may be affected will receive a letter from the government as part of a campaign to resolve the issue.
Some of those affected may have died, and their families have the right to verify eligibility and claim delinquency.
The Department of Work and Pensions (DWP) and Revenue and Customs officials are working together to find affected people and correct their records so they can receive the appropriate amount of the National Pension.
There is a high degree of uncertainty about the likelihood that the shortfall has been paid. The DWP said the amount could range from £300m to £1.5bn.
Its core estimate is that about 210,000 people were in debt of £1 billion, of which 43,000 died. This equates to a deficit of about £5,000 per person on average.
If someone claimed child benefits before May 2000 and did not provide an NI number on the bill, their NI records may not accurately indicate the number of years eligible for HRP, and the National Pension may affect your eligibility for
The government said women in their 60s and 70s were most likely to be affected.
HMRC uses NI records to identify as many people as possible who may have been eligible for HRP between 1978 and 2010 but do not have HRP credits on their NI records.
Starting in the fall, we plan to write letters to people who meet these criteria to confirm their eligibility. If you are eligible, you can apply online.
The DWP will recalculate national pension eligibility and inform the public if there are any arrears.
Former Pensions Minister and now LCP partner Sir Steve Webb said: “The scale of these errors is enormous. It is shocking that so many women are undervalued for so much. It’s imperative that things get right,” he said. as a matter of urgency. ”
Alice Guy, head of pensions and savings at investment platform Interactive Investor, said: “State pensions are a big deal, especially for many women who have lower private pension incomes than men and are more likely to fall into poverty in old age. is important to the . ”
A government spokesperson said, “Most people’s records will not be affected, and we will soon be launching a new online tool to help citizens see if they need to apply. HMRC will also start in the fall. We will begin to write letters to those who may be affected.”
“Our priority is to ensure that everyone gets the financial support they deserve and the rate of underpayment of the National Pension due to public mistakes remains low at 0.5% of spending. If so, we are working to fix it as soon as possible.”
