DWP rectifies State Pension errors, issues back payments

The Department for Work and Pensions (DWP) is set to pay out an average of £7,859 in back payments to individuals affected by historical errors in State Pension calculations. Recent data has shown that nearly 400,000 letters were sent to older people, mostly women, asking them to check their State Pension payments. The DWP found inaccuracies linked to National Insurance records that might have led to underpayments. These errors often involved missing Home Responsibilities Protection (HRP) periods. In response, the DWP and HM Revenue and Customs (HMRC) started a program to correct these mistakes by inviting eligible individuals to apply for adjustments. So far, over 493,000 people have checked their eligibility for HRP through the online tool provided by the DWP. The department has already paid out £42 million in back payments since the issue was identified. Individuals affected by the errors are expected to receive their money by the end of this year. The DWP estimates that the total underpayment could be between £300 million and £1.5 billion. HRP was designed to help parents and caregivers protect their right to a State Pension but was replaced by National Insurance credits in 2010. Those affected can determine their eligibility through the self-identification tool available on GOV.UK. People may qualify for HRP if they received Child Benefit for a child under 16 or cared for someone with a disability. Importantly, not everyone will qualify, especially if they chose to pay reduced National Insurance contributions. The DWP encourages anyone who thinks they might be affected to check their records online.