HM Revenue and Customs (HMRC) will start writing to thousands of older people this month who may have been underpaid an average of £5,000 on their State Pension due to missing information on their National Insurance (NI) record.
The issue affects mostly women in their 60s and 70s who may have Home Responsibilities Protection (HRP) missing from their NI record.
The Department for Work and Pensions (DWP) is working with HMRC to identify affected pensioners and estimates that 210,000 people may have been underpaid a total of £1.3 billion.
However, the DWP cannot start to correct these cases until HMRC, which administers both National Insurance and Child Benefit records, corrects the affected NI records.The DWP State Pension correction exercise has identified that 10 million National Insurance records of people claiming Universal Credit have not been updated properly and a small proportion of these (210,000) may have also been underpaid their State Pension.
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