New FOI shows Government ‘set to miss tens of thousands of older pensioners’ in drive to find mothers missing out on NI credits
Pensions & benefits Impact
An HMRC campaign designed to track down over 180,000 pensioners who have missed out on National Insurance credits for time raising children is set to fail, according to LCP Partner, Steve Webb.
In its 2022/23 Annual Report, DWP admitted that an estimated 187,000 pensioners (of whom 43,000 are now deceased) have been underpaid state pension because NI credits – previously known as ‘Home Responsibilities Protection’ – was missing from their NI record. DWP estimated that just over £1 billion would have to be paid out in arrears.
In an effort to track these women down, HMRC has so far issued over a quarter of a million letters to people over pension age with no HRP on their record, encouraging them to put in a claim.
However, an FOI reply to Steve Webb showed that the letter (copy attached) relies exclusively on internet-based claiming. Recipients are told not to apply until they have used an online check for HRP entitlement and then to put in their application online. The letter makes no reference to any alternative way of claiming, despite the existence of a simple paper claim form (CF411) which can be used instead.
Research from Age UK suggests that 29% of people aged 75 or over never use the internet, which suggests that many of the recipients of these letters may not be able to act upon them.
Former pensions minister Steve Webb is now calling on HMRC to review its communication strategy for older pensioners and to make paper claim forms readily available.
Commenting, Steve Webb, partner at pension consultants LCP said:
Whilst I understand the desire of government departments to cut costs, it is completely inappropriate to write letters to hundreds of thousands of pensioners which suggest that the only way to apply is online. At the very least, the letter should make it clear that other ways of claiming are available for those that are not online. I am concerned in particular for older pensioners who may not have friends or family to help them. Those who have been underpaid have typically missed out on thousands of pounds, and they deserve to have this put right. Unless HMRC addresses this issue it is highly likely that tens of thousands of older pensioners may continue to miss out on money which is rightfully theirs.
Notes to editors:
- The DWP Annual Report for 2022/23 gives estimates of the numbers underpaid because of HRP errors and the amount underpaid. This can be found on p374 of the DWP annual report and accounts 2022 to 2023
- Age UK’s estimates of internet use by age can be found here
- HRP can be claimed by completing the CF411 form. There is no need to use an online checking tool first before applying. The main requirements for eligibility for HRP in any given year are:
- The year is 1978/79 or later (HRP was only introduced in 1978);
- You received child benefit in your name
- You had a child aged under 16 for the full financial year
- You were not paying, or eligible to pay, the married woman’s ‘reduced stamp’ for that year
