Some 150,000 Britons are facing a state pension crisis due to underpaid payments, according to new figures from the Department for Work and Pensions (DWP).
Based on the Government department’s annual report, almost 200,000 mothers did not receive their full pension entitlement with experts claiming the issue is being addressed at a “snail’s pace”,
This is due to missing Home Responsibilities Protection (HRP) on their National Insurance (NI) record which was the precursor of NI contributions.
It was designed to protect the pension record of those unable to work, including stay-at-home mothers, and allowed them to pay National Insurance contributions while looking after their children.
An error was discovered with many Child Benefit claim forms submitted before 2000 not including a National Insurance number.
As a result, this meant that the relevant HRP for thousands of women was not successfully transitioned from the Child Benefit system to the National Insurance system.
Do you have a money story you’d like to share? Get in touch by emailing [email protected].
The DWP has asserted it is working to rectify the situation for those affected
PA
Despite HM Revenue and Customs (HMRC) having written to those affected since autumn, the DWP’s annual report found that DWP has only assessed just 419 cases out of a total number expected to be affected of 194,000 since March.
Some £2.2million in arrears has currently been paid out to victims against an overall estimated final bill of £1,15billion.
Experts cite the DWP’s challenge after getting rid of its previous Child Benefit records which has pushed them to rely on sending letters to women impacted by the error.
In certain situations, HMRC has contacted elderly pensioners encouraging them to check their eligibility on a website before submitting a claim or has asked for records to prove they qualify.
Sir Steve Webb, the former pensions minister and LCP partner, broke down the current situation for thousands of pensioners.
He explained: “Once the government realised that nearly 200,000 mothers may have been underpaid their state pension, action should have been taken to fix the problem with much greater urgency, especially as many of those who have lost out are now elderly.
“Instead, DWP has so far assessed fewer than 500 cases out of that total, and the exercise is proceeding at a snail’s pace.
“When the Government talks about continuing the exercise into 2027/28 it is clear that this issue is not getting the priority that it deserves”.
According to the DWP, the latest estimate suggest 194,000 mothers missing out on a vital state pension top-up.
Some 151,000 are living with 43,000 having passed and the majority of those living being elderly.
LATEST DEVELOPMENTS:
Experts are calling for faster action to those affected by historic state pension errors
PEXELS
The report found that only less than 100,000 people received payments by the end of March 2024 in relation to the group of errors relating to married women, widows and those in their 80s.
This is a combined payment of £594million which includes around 44,000 married women, 23,000 widows/widowers and 33,000 over 80s.
A Government spokesperson told GB News: “We have identified and are correcting an issue related to the historical recording of Home Responsibilities Protection on the National Insurance records for people who first claimed Child Benefit before May 2000.
“Our priority is ensuring everyone receives the financial support to which they are entitled and HMRC has begun writing to those likely affected by this issue. The State Pension underpayment rate remains low at 0.4 per cent of expenditure.”