More than 100,000 pensioners could owe an additional £5,000 due to data deletion errors.
The Department for Work and Pensions (DWP) has admitted that an estimated 187,000 people will have to pay a total of around £1 billion in state pensions due to a historical error.
The government has announced plans to make significant deductions for parents who claim child benefits before May 2000, in order to clarify who should be paid and how much.
The error was discovered during an audit of national insurance records 15 years ago and resulted in £85 million being paid out at the time.
The government has announced plans to make large deductions for parents who claim child benefits before May 2000, in order to clarify who should be paid and how much.
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but, Thousands more have been affected, and their debts are far greater than originally thought.
This mistake primarily affects mothers who applied for National Insurance credit while caring for their children at home, but it didn’t make it into the record.
An unemployed person who has claimed child benefits for 15 years may be entitled to National Insurance (NI) premiums for an additional 15 years.
Loss of NI credit over these 15 years could therefore be worth £4,543 per annum in additional national pensions, or £68,145 over 15 years (ignoring inflation).
LCP Partner and former Pensions Minister Sir Steve Webb said: It is shocking that so many women do not receive large wages.
“This is why it is imperative that the situation be properly resolved with urgency.”
The mistake appears to affect women in their 60s and 70s who applied for child benefits before May 2000.
If you made a claim without including your National Insurance Number, the credit may not have been transferred to your NI Account.
An unemployed person who has claimed child benefits for 15 years may be entitled to National Insurance (NI) premiums for an additional 15 years.
PA
Tom Selby of brokerage AJ Bell said an administrative error by the government was “unforgivable.”
“The most important thing now is to identify the underpaid people as soon as possible and put them back in their rightful place,” he told The Telegraph.
“Sadly, it is inevitable that some people will die before receiving compensation.
“When you receive a post from DWP, it’s important to open it up and act on it. You can claim online, but if you do nothing, you get nothing.”
