Stay-at-home mums to receive up to £5,000 due to benefit error

Thousands of people – mainly stay-at-home mums - can expect a letter within the next 18 months about a benefit error that may mean they’re owed up to £5,000.

The mistake has seen around 210,000 people miss out on money that should have been paid as part of their state pension.

It is estimated 60,000 of those affected have died before the error could be corrected.

The Department for Work and Pensions (DWP) believes about £1.3bn is owed to those affected, an average of around £5,000 each.

What went wrong?

The amount you get for your state pension is based on your national insurance (NI) contributions.

Between 1978 and 2010, if you were a parent you were protected from gaps in your contributions by a system known as Home Responsibilities Protection (HRP) credits. This has since been replaced by NI credits.

If you claimed child benefit before May 2000 but didn’t provide your NI number on the form, your HRP credits may not have been recorded on your NI account.

This may mean you’ve been paid less state pension than you should have been. Women who are in their 60s and 70s now are most likely to have been affected.

How is the error being corrected?

The DWP is writing to hundreds of thousands of people who may have been affected by the mistake over the next 18 months.

If you’re found to have been affected, your NI record will be corrected, your state pension will be recalculated and you’ll receive a payout for the money you’ve missed out on so far.

Do I need to do anything?

If you’ve received child benefit since 1978, check your NI record.

There is a form you can fill in to get your record corrected if the benefit payment isn’t showing. Or you can call HMRC’s national insurance helpline for a form.

You may also still be entitled to claim HRP if, between 1978 and 2010, there were full tax years when you:

• shared caring responsibilities for a child under the age of 16 with a live-in partner who claimed child benefit instead of you
• cared for a sick or disabled person

Still got questions?

If you’re unsure whether you may be missing out on money you’re entitled to, get in touch with the Pension Service.