HMRC is currently writing to people that have been impacted by an old administrative error. This error was related to Home Responsibilities Protection (HRP). If you had children between 1978 and 2000 and claimed Child Benefit during that time, you could be one of thousands of UK households who are now due a correction to their National Insurance record.
For years, HRP was a vital scheme (running from 1978 to 2010) that helped those taking time out of work to raise children or care for others. These periods still counted towards your State Pension, preventing gaps in your NI record.
However, if you claimed Child Benefit before May 2000, you were not always required to provide your National Insurance number. This oversight means your HRP wasn’t properly recorded. The result is a lower State Pension than you are genuinely entitled to.
According to recent reports, around 370,000 people are believed to have been affected by this error. As of September last year, HMRC had already identified and processed 5,344 cases, paying out a total of £42 million in arrears. The average payout per person for those who have already received their correction is almost £8,000!
Are You Affected?
This issue primarily impacts:
- Mothers who claimed Child Benefit in their own name during this period.
- Individuals who gave birth in the 1980s and 1990s.
What Should You Do?
- Look Out for a Letter: HMRC is sending letters to those they have identified as effectees. If you receive one, please do not ignore it and follow the instructions listed.
- Check Your NI Record: Even if you do not receive a letter, but you had children between 1978 and 2000 and claimed Child Benefit, it is strongly advised that you check your National Insurance record. You can easily do this via the GOV.UK website.
- Potential Back Payments: For those affected, the average amount owed could be substantial, leading to thousands of pounds in backdated State Pension payments.
At Legend Financial, we encourage you to review your situation. If you have any questions or need guidance on checking your NI record, reach reach out to our team of expert accountants. We are here to help ensure you receive every penny you are entitled to.
Schedule a consultation today and follow us for more updates!
