Last month we reported that the time limit to fill National Insurance gaps was being extended to 5 April 2025. HMRC are now highlighting similar National Insurance issues which, whilst having little impact on employers, could affect older workers’ and also friends/family.
What is the issue?
It has come to light that some people may have Home Responsibilities Protection (HRP) missing from their National Insurance records. HRP was a scheme to help protect parents’ and carers’ entitlement to State Pension up until 5 April 2010, after which it was replaced with National Insurance credits.
If an individual claimed Child Benefit before May 2000 and did not provide their National Insurance number on the claim (because it was not mandatory at that time), then their National Insurance record may not show the correct number of qualifying years of HRP, which may affect their State Pension entitlement. It is thought that those most likely to be affected are women in their 60s and 70s.
How is it being resolved?
From this Autumn, HMRC will start writing out to those it believes may have been entitled to HRP but where there is nothing on their National Insurance record. Since Child Benefit records are destroyed after five years, HMRC cannot be certain who qualifies and are beginning their search by looking at gaps in National Insurance records. HMRC will start by writing to those already over pensionable age and inviting them to read eligibility guidance and use an online tool to find out if they can make a claim. If they are eligible, they can claim online. Once the application is processed, the Department of Work and Pensions will recalculate their State Pension entitlement and let them know whether they are due any arrears. Those under state pension age who are also potentially affected will be contacted in phases, grouped by how close to state pension age they are.
HMRC have stated that those who are not able to use the online tool can call the National Insurance Helpline for support, details of which will be provided in the letter. There will also be extra support available for those who need it.
This article reflects the position at the date of publication (15 August 2023). If you are reading this at a later date you are advised to check that that position has not changed in the time since.
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