State pensioners missing money which 'rightfully theirs' due to HMRC issue

A HMRC state pension issue could see tens of thousands of pensioners miss out on money which is rightfully theirs.The Department for Work and Pensions (DWP) estimates that £1billion will need to be paid out in arrears to rectify state pension underpayments.

A former Pensions Minister, Sir Steve Webb, who worked under the Liberal Democrats and Conservative Party coalition, has claimed, the issue relates to missing Home Responsibilities Protection (HRP) for over 180,000 older women.

But HMRC letters sent out direct recipients to an online self-check for potential eligibility and instruct them to apply online. Recipients are told not to apply until they have used an online check for HRP entitlement - even if they are in their nineties.

READ MORE UK tourists ordered to 'leave' Tenerife and Lanzarote warn 'it's scary'

Webb 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 letters should give recipients a phone number to call or include a paper form for those who are not online."

Webb argued that this method is "wholly unacceptable" given the large numbers of older people who are not online. Webb warned: "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."

James Murray, Exchequer Secretary said: "The State Pension is the foundation of state support for people in retirement. We are urging people to check their National Insurance records to make sure they will receive the pension they deserve."

Emma Reynolds MP, Pensions Minister reinforced the importance of pension security, urging: "The Government's priority is to ensure pensioners have security and dignity in retirement. I strongly encourage anyone who thinks they are missing out to check their eligibility and apply for Home Responsibilities Protection."