HMRC breaks silence over state pension error and says 'contrary to reports'

Tens of thousands of older pensioners could miss out on state pension cash after a HMRC and Department for Work and Pensions (DWP) error, an ex-pensions minister has said. Former Liberal Democrats Pensions Minister Sir Steve Webb said a HM Revenue & Customs (HMRC) campaign to track down more than 180,000 who have missed out on national insurance (NI) credits for time raising children is set to fail.

The DWP has admitted that an estimated 187,000 pensioners – of whom 43,000 have died – had been underpaid their state pension because of gaps in their NI record. The DWP estimated that just over £1bn, £5,000 each, would have to be paid out in arrears.

HMRC has so far issued more than 250,000 letters to people over pension age with no Home Responsibilities Protection (HRP) on their record, encouraging them to put in a claim. A Freedom of Information (FOI) request sent by Sir Steve showed that the letters sent to these women relies exclusively on internet-based claiming, excluding many older pensioners who don’t use the internet.

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Sir Steve, who is now partner at pension consultants LCP, said: “Whilst I understand the desire of Government departments to cut costs, it is completely inappropriate to write letters to hundreds of thousands of pensioners which suggest that the only way to apply is online.

“At the very least, the letter should give recipients a phone number to call or include a paper form for those who are not online. I am concerned in particular for older pensioners who may not have friends or family to help them.”

Sir Steve added: “Unless HMRC addresses this issue it is highly likely that tens of thousands of older pensioners may continue to miss out on money which is rightfully theirs.” An HMRC spokesperson said: “Contrary to what’s been claimed, the letters do include a helpline number to request a paper application form – although for most people it will be much quicker and easier to use our online service.”