Thousands of state pensioners in the UK may be entitled to a payout of approximately £7,859 each due to errors involving the Department for Work and Pensions (DWP) and HM Revenue & Customs (HMRC). The issue primarily affects parents—particularly stay-at-home mothers—who missed out on Home Responsibilities Protection (HRP) in their National Insurance (NI) records.
Eligible individuals can still apply to reclaim the money owed to them. The UK government has urged affected pensioners to check their records and submit an application if necessary.
DWP and HMRC Announce £7,859 Payments
| Feature | Details |
|---|---|
| Scheme Name | Home Responsibilities Protection (HRP) |
| Eligibility Period | 6 April 1978 – 5 April 2010 |
| Affected Individuals | Parents, carers, foster parents, kinship carers |
| Average Payout | £7,859 per person |
| Total Paid So Far | £42 million in arrears |
| How to Apply | CF411 form via HMRC |
| Processing Body | HM Revenue & Customs (HMRC) & DWP |
| Official Website | www.gov.uk |
What is Home Responsibilities Protection (HRP)?
HRP was a scheme introduced to protect the State Pension entitlements of parents and carers. It ensured that time spent caring for children or disabled individuals did not negatively impact an individual’s National Insurance contributions.
Key Facts About HRP
- Introduced in April 1978 and replaced by National Insurance credits in 2010.
- Designed to protect parents and carers from losing State Pension benefits.
- Automatically applied for those claiming Child Benefit or Income Support while caring for a sick or disabled person.
Due to errors in the record-keeping process, many eligible individuals did not receive HRP, resulting in lower State Pension payments.
Who is Eligible for the £7,859 Payment?
You May Be Eligible If You:
- Claimed Child Benefit for a child under 16 or received Income Support while caring for a disabled person between 6 April 1978 and 5 April 2010.
- Shared childcare responsibilities with a partner who claimed Child Benefit on your behalf.
- Were a foster carer or a kinship carer (caring for a friend or family member’s child in Scotland) for a full tax year between 2003 and 2010.
Who Needs to Apply?
- If HRP is missing from your NI record, you must apply to correct it.
- Individuals who are unsure about their eligibility can check online through HMRC’s self-identification tool.
How to Apply for the Missing HRP Credit
Step-by-Step Application Process
- Check Your National Insurance Record
- Use HMRC’s online tool to see if HRP is missing from your records.
- Complete the HRP Application Form
- Download the CF411 application form from the HMRC website.
- Provide Supporting Documents
- Include any evidence of Child Benefit claims or caregiving responsibilities.
- Submit the Application
- Send the completed form to HMRC by post or apply online if eligible.
- Await Processing
- HMRC will review applications and update NI records accordingly.
How Much Has Been Paid So Far?
As of September 2023, HMRC has processed:
- 37,289 applications from individuals over state pension age.
- 5,428 applications from individuals under 66 years old.
The DWP has already paid out £42 million in arrears payments to eligible pensioners.
Why This Payout is Important
Many pensioners rely on their State Pension as their main source of income. Due to errors in recording HRP, thousands of people have missed out on pension credits, resulting in lower retirement payments. This scheme aims to correct these mistakes and provide financial compensation.
Key Benefits of Claiming Missing HRP
- Increases State Pension entitlement.
- Ensures a fair pension amount based on accurate National Insurance contributions.
- Provides a financial boost for retirees who were wrongly affected.
Frequently Asked Questions (FAQs)
1. How do I know if I am eligible for the £7,859 payout?
You can check your National Insurance record online through HMRC’s self-identification tool to see if HRP is missing.
2. What should I do if HRP is missing from my NI record?
You need to apply for HRP credits by filling out the CF411 form and submitting it to HMRC.
3. How long does the application process take?
Processing times vary, but HMRC has already handled over 42,000 applications and is actively working on more.
4. Will I receive a lump sum payment?
Yes, if you are eligible, the arrears will be paid as a lump sum into your bank account.
5. Can this affect my future State Pension payments?
Yes, correcting your NI record may increase your weekly or monthly pension payments in the future
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