Tens of thousands nearing retirement could be eligible for free State Pension top-ups.
The taxman is urging parents nearing retirement to check if they are eligible for a State Pension boost.
According to HMRC, tens of thousands who claimed Child Benefit between 1978 and 2000 could be due a free pension top-up.
HMRC said it has already written to 257,000 people over State Pension age who may have been underpaid and is now contacting those yet to retire asking them to check their eligibility.
James Murray, Exchequer Secretary to the Treasury, said: “The State Pension is the foundation of state support for people in retirement.
“We are urging people to check their National Insurance (NI) records to make sure they will receive the pension they deserve.”
Find the right financial adviser for your needs with FinacialAdviser.co.cuk
Who might be eligible?
Home Responsibilities Protection (HRP) was a scheme designed to help protect parents’ and carers’ State Pensions, which was replaced by National Insurance Credits in 2010.
It was applied to the NI records of those who claimed Child Benefit between 1978 and 2000 and reduced the number of qualifying years a person with caring responsibilities needed to receive the full Basic State Pension.
“However, if someone claimed Child Benefit before May 2000 and did not provide their NI Number on their claim, HRP may not have been applied and their State Pension entitlement could have been affected,” HMRC explains.
“If people are missing HRP from their NI record, it doesn’t automatically mean their State Pension calculation is incorrect, but it does increase the possibility, particularly if they spent a number of years away from work to raise a family.”
HMRC added it was re working to identify those people affected and encourage them to make a claim for HRP so their records can be amended.
Emma Reynolds, Minister for Pensions, said: “I strongly encourage anyone who thinks they are missing out to check their eligibility and apply for HRP – taking just a few minutes out of your day now could mean a boost to your retirement.”
Find the right financial adviser for your needs with FinacialAdviser.co.cuk
How to check if you’re eligible
You can visit this HRP eligibility checker page to see if you are at risk of missing out.
As the page explains, you may still be able to apply for Home Responsibilities Protection (HRP) for full tax years between 1978 and 2010 if any of the following were true:
- You were claiming Child Benefit for a child under 16;
- You were caring for a child with your partner who claimed Child Benefit instead of you;
- You were getting Income Support because you were caring for someone who was sick or disabled;
- You were caring for a sick or disabled person who was claiming certain benefits.
If you are eligible, you can then make a claim using this page. HMRC says it should only take 15 minutes to apply.
“If a customer makes a successful claim, HMRC will update their NI record and DWP will recalculate their State Pension entitlement,” it adds.
“State Pension entitlements will either increase or remain the same, depending on an individual’s circumstances.
“Some customers over State Pension age may also receive some arrears payments.”
*This article contains affiliate links, which means we may receive a commission on any sales of products or services we write about, but it won't affect the price you're offered. This article was written completely independently.