BBC expert says anyone who had kids 1978-2010 'could be owed thousands' due to HMRC error

BBC expert says anyone who had kids 1978-2010 'could be owed thousands' due to HMRC error 'Spread the word if you think friends, neighbours, or loved ones may have been affected by this' A BBC finance expert has explained how anyone who had children in a 32-year period should apply for a payment they potentially missed out on at the time because of an error from HM Revenue and Customs. Appearing on BBC Morning Live, Iona Bain said more than 200,000 people might be owed thousands in back payments due to Home Responsibilities Protection (HRP). She said the HRP problem impacted where parents, mostly women, took time out of work when they had children - and also people who took time off to care for sick relatives. She said: “It was a government scheme that was designed to solve a problem that could potentially crop up whereby folks who took time out of work to look after children or relatives who were ill or disabled might find that they had gaps in their national insurance record and that could mean that they didn’t get the full state pension that they were entitled to. “So HRP was designed to plug those gaps in their pension record so they didn’t miss out. Now HRP ran from 1978 to 2010. There was a big flaw in the system though which is that if you made a child benefit claim after 2000, then you would have needed to put your national insurance number on the claim form in order for your eligibility for HRP to be logged.” She explained that ‘lots of people did not know that’s what they had to do.’ Ms Bain explained: “So, they didn’t provide their NI number and therefore their HRP entitlement was not registered. And that’s why people ended up missing out on HRP in their droves as it turns out. And this is a problem that did come to the government’s attention in recent years and it embarked on what’s called a correction exercise and that is basically government language for writing to anyone who might be affected by this to say hey we think you may be missing out on HRP and as a result not getting the state pension that you’re entitled to and we’re inviting you to make a claim for that missing HRP,” It is estimated that 200,000 people could still be missing out on HRP. Ms Bain said: ““e’re talking mainly about women in their 60s and 70s so I think the message is there’s still time for you to apply for that missing HRP. “Spread the word. If you think friends, neighbours, or loved ones may have been affected by this, too. Then tell them so they don’t miss out.” The plea echoes one from money man Martin Lewis who said one listener who claimed the money got back £31,674 for underpayment of state pension. Mr Lewis went on to outline which groups of people were most likely to have been affected by the error: "Who is most likely to be affected? Women currently between the age of 41 and 90, though it's mainly women of the age of 60s and 70s. But it could be anyone 41-90 who took time away from paid work to look after a child or a person with a long-term disability at any point between 1978 and 2010 who claimed child benefit or income support for the first time before May 2000. "So effectively your kids were born before May 2000. You go onto Gov.uk, you find your state pension forecast and you look if you're entitled to the full state pension years. If you're not then you need to check your gaps in national insurance years which you can also do on gov.uk. "If there are gaps in your record from 1978 to 2010 these were the years you took off work to care for a child or someone with a long-term health condition. You may be missing Home Responsibilities Protection. At that point we're getting technical in what you need to do. Go and look it up there are good guides online on what to do next. "It's worth checking, it's huge money, these mainly women have been done over by a system error." Who may be affected 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. Class 3 National Insurance credits for parents and carers (CPC) available from 6 April 2010 have been recorded correctly, as have partial periods of HRP. More details on the Gov.uk website here. To listen to the podcast click here.