State pension warning: Martin Lewis says parents could be owed thousands
Martin Lewis says parents could be be owed thousands
PA
Martin Lewis has issued yet another state pension warning after suggesting hundreds of thousands of parents could be missing out on payments.
Mothers who stayed at home before 2010 have been identified as particularly at risk of missing out on £1,000s in state pension payments, the Money Saving Expert’s newsletter has claimed.
Writing in the MSE newsletter, Lewis’ team said: "If you're a woman in your 60s or 70s who stayed at home to care for children before 2010, you may be missing out on £1,000s in state pension payments due to errors in your national insurance record.
"You don't need to do anything for the time being, though you will need to claim your missing state pension payments later this year."
The MoneySavingExpert has impacted an estimated 210,000 people
PexelsThe Department for Work & Pensions (DWP) and His Majesty’s Revenue & Customs (HMRC) recently announced plans to repay impacted women who have been overpaid for over a decade.
It has been estimated that as many as 210,000 people have been underpaid in total.
A majority of those affected by the error were stay-at-home mothers.
However, an official report published earlier this month revealed the Government was aware of 187,000 people owed arrears.
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Women in their 60s and 70s have been identified as particularly at risk of missing out
PexelsMSE added: "The average amount of state pension back payment due to this issue is £2,000, with the highest found to be £33,300, according to a report published earlier this month by the National Audit Office."
A system known as Home Responsibilities Protection Credits (HRP) existed from 1978 to 2010 to avoid gaps.
The scheme was replaced by National Insurance Credits in 2010.
However, the error means someone who claimed child benefit before May 2000 but did not provide their National Insurance number on the form could miss out on transferring credit over.
MoneySavingExpert Martin Lewis
PAThe problem may affect pension entitlement, particularly among women in their 60s and 70s.
The DWP is ramping up efforts to contact people who might have been impacted by the error from autumn this year.
Corrected National Insurance records can result in an increased pension payment and even a lump sum.
But some Britons who have been affected might not be identifiable by HMRC’s search.
Child Benefit records which are older than five years have now been deleted due to data protection.