DWP error means state pensioners are owed 'thousands' for bank account

A Department for Work and Pensions error means you could be owed thousands of pounds from your state pension. Those potentially owed money from their retirement include pensioners who claimed Child Benefit before 2000 and have gaps in their National Insurance records.

The amount of State Pension someone gets is based on their National Insurance record and the number of ‘qualifying years’ they have. If someone claimed Child Benefit before May 2000 and did not provide their National Insurance Number on the claim, their National Insurance record may not show the correct number of qualifying years of HRP. This may affect their State Pension entitlement. Women in their 60s and 70s are most likely to be affected.

If someone first claimed Child Benefit after May 2000, they will not be affected do not need to contact HMRC. This is because it became mandatory in May 2000 to provide a National Insurance Number for Child Benefit claims.

READ MORE UK 'faces 10cm of snow per hour' with two parts of England covered

There are no longer records available for everyone who may be eligible for HRP. This is because Child Benefit records are deleted 5 years after the claim ends, for data protection. Without the Child Benefit records, it is not possible to identify every person who may be missing HRP. HMRC is using National Insurance records to identify as many people as possible who might have been entitled to HRP between 1978 and 2010 or have no HRP on their National Insurance record.

The DWP will recalculate the State Pension entitlement for those over State Pension age and let them know their recalculated State Pension entitlement and whether they are due any arrears. DWP will tell HMRC when they have recalculated the State Pension entitlement. A change in income could affect the amount of tax someone pays or the benefits someone is entitled to, including Pension Credit. HMRC will collect any Income Tax due on an increase in State Pension and on any arrears paid.