HMRC Announces £5,000 Payment for 210,000 Seniors – Know Eligibility and Payment Dates

The UK government has recently announced a significant payment initiative to rectify past errors affecting many senior women. Around 210,000 seniors are eligible for a £5,000 HMRC payment due to missing National Insurance Credits and Home Responsibilities Protection (HRP) credits, which have led to underpaid state pensions. This article provides the latest updates, eligibility criteria, and payment dates for this important correction.

Overview

The HM Revenue and Customs (HMRC) has started contacting senior women whose National Insurance (NI) records were missing HRP credits. This error affected their state pension amounts. Collaborating with the Department for Work and Pensions (DWP), HMRC aims to correct these mistakes and ensure swift payments to the affected individuals. The total amount due is estimated to be around £1.3 billion, which averages out to approximately £5,000 per person.

Initial Contact

The DWP has begun sending letters to the affected seniors, primarily targeting those in their 60s and 70s. These letters inform them about the errors and the impending correction payments. Seniors alive today are expected to receive around £5,000 each, while the families of deceased individuals may receive an average of £3,000.

Eligibility

To qualify for the £5,000 HMRC payment, claimants must meet the following criteria:

1. Child Benefit Claims: The claimant must have received child benefits between 1978 and 2000.
2. Claim in Own Name: The child benefits must have been claimed in the individual’s name, not their partner’s.
3. Child’s Age: The child of the claimant must have been aged 16 or under at the time of the claim.
4. National Insurance Contributions: The maximum Class 1 National Insurance liabilities must be £100,000.
5. Reduced Stamp: The claimant should not have paid the reduced stamp for married women.

Verification Steps

If you believe you have been underpaid, follow these steps to verify your status:

1. Check NI Records: Review your National Insurance records and state pension entitlements.
2. Look for HRP Credits: Ensure that all HRP credits or other relevant credits are displayed on your NI record, especially if you reached state pension age after April 5, 2010.

Payment Dates

The HMRC and DWP are working together to resolve these errors within the next 18 months. While the exact payment dates have not been announced, the process began in early 2024, with corrections and payments expected to be completed by mid-2025.

Correction

Affected individuals have begun receiving notifications via brown envelopes. These letters explain the potential underpayments and the steps being taken to rectify them. The correction process includes updating NI records to reflect the correct HRP credits from 1978 to 2010.

Latest Updates

The DWP and HMRC have initiated a campaign to address the unrecorded HRP credits issue. This involves systematically updating NI records to include the missing credits. The rectification process is essential to ensure that all affected pensioners receive their rightful payments.

Underpayment

To determine if you are underpaid:

1. Review Records: Check your state pension and NI records for any missing HRP credits.
2. Use Online Tools: The UK government provides online tools to help you verify your NI record and HRP credits.
3. Contact Helpline: If in doubt, contact the National Insurance Helpline for assistance.

Claiming Missing Credits

If you identify missing HRP credits, you can claim them by filling out Form CF411. Keep updated with the latest information on the UK government’s official website and frequently visit for HMRC payment-related articles.

The £5,000 HMRC payment aims to correct significant past errors affecting many senior women’s state pensions. By knowing the eligibility criteria and staying informed about the correction process, eligible individuals can ensure they receive their due payments. Regularly checking NI records and staying in contact with HMRC and DWP will help in rectifying these issues promptly.

FAQs