State pension: Historic back payments due for some stay at home mums | Personal Finance | Finance
It is as a result of state pension underpayments which go back decades, found by the Department for Work and Pensions (DWP). The Department had already identified historic state pension underpayments, and started the process to rectify the issue.
However, it led to finding another category of women impacted, aside from widows, married women and those over 80.
Since 1978/79, the state pension system has been designed to help protect those who may have gaps in their record.
This includes those who took time out of paid work, such as stay at home mothers.
The DWP blunder will not have affected everyone, however, some may have been underpaid.
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However, she also realised she had not been receiving credits for the 1978/79 year onwards, when she was not in paid work at the time.
The matter remained unresolved for a time, but with the help of Sir Steve Webb, former pensions minister and partner at LCP, it was eventually settled.
HMRC said Mrs Wainwright was entitled to HRP for seven years, enough to give her a full state pension.
She has now received a lump sum of approximately £1,500 in back payments, with her regular state pension increased by over £20 per week to reflect the full flat rate.
Mrs Wainwright said: “I would encourage any parent who spent time bringing up children to check that they are getting credits on their NI record.
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“If I had not checked my own record carefully, it is quite possible I would still be getting the wrong rate of pension.”
HMRC stated Mrs Wainwright has been awarded HRP for the period of April 6, 1981 to April 5, 1988, and has written to her to inform her of the change.
The annual report from the DWP describes historic periods of Home Responsibilities Protection (HRP) not being recorded accurately as the second largest reason for underpayments of the state pension.
The Department is actively taking steps to rectify the matter, but has said: “Investigations are complex, involving the use of tailored data reports.
“The potential numbers of people affected and estimates of cost are unlikely to be available until autumn 2022 at the earliest.”
As some women may have been short-changed for years, it is likely to be worthwhile checking.
Sir Steve Webb states people should check if they were entitled, then look at whether their National Insurance record reflects the credits/protections the person was entitled to.
If it is missing, then Britons can take action.
Sir Steve added: “Rather than wait for the Government to fix the problem, I would encourage anyone who has received child benefit since 1978/79 to check that the relevant credits are on their NI record.
“If not, this can be fixed by filling in a form, and the result could well be a higher pension and a worthwhile lump sum.”
A Government spokesperson previously told Express.co.uk: Government spokesperson told Express.co.uk: “This year we will spend over £110billion on the state pension and support over 12.5 million pensioners.
“We are investigating an issue with the historical recording of Home Responsibilities Protection, with work under way to identify those affected.”
