The majority of people contacted by letter did not go on to apply for HRP. Barriers included not understanding the letter, thinking the communication was a scam, and a reliance on digital methods to put in a claim. HRP was a scheme that helped protect the State Pension entitlements of parents and carers between 1978 and 2010. Errors on National Insurance records mean HRP credits are missing from records, meaning thousands of people – mainly women - have been paid less state pension than they are entitled to.
The DWP has issued research into attempts to contact people who may have been underpaid state pension: Exploring take-up of missing Home Responsibilities Protection
Helen Morrissey, head of retirement analysis, Hargreaves Lansdown: “This research lays bare the complexities the government faces in resolving the long running issue of underpaid state pensions. The state pension system has become so confusing that even when government has communicated with those who may have a claim, the complexity and jargon has put many of them off. This means many thousands are getting less than they are entitled to.
Issues identified by the government include the use of jargon. Many simply didn’t understand what was being asked of them -that mistakes made decades ago had been identified and could be rectified. Terms such as Homes Responsibilities Protection haven’t been used for many years – it’s understandable that people may have little recollection as to whether they claimed it or not. The reliance on online forms to claim refunds was also a significant barrier, with many not feeling internet savvy enough to navigate the system without help.
Notably many people decided not to take action because they feared doing so might actually reduce their state pension or they were scared that they had been targeted by scammers. It’s clear the government faces an uphill battle if it is to successfully reunite those affected with their extra pension payments.
The introduction of the new state pension system in 2016 was meant to simplify things - and it should, but again challenges remain for these younger groups. Those who opted out of Child Benefit because of the High-Income Child Benefit Charge will not have known that by doing so they risk missing out on National Insurance credits towards their state pension. Government has put measures in place to deal with this, but it remains something that can trip people up and so awareness needs to be raised on an ongoing basis.
Encouraging people to check their state pension record to see if there are any gaps is vital. If there are mistakes, then they have time to correct them. If the gap has occurred during a period of time when they qualified for a benefit -such as Child Benefit – then they can backdate a claim and get the gaps filled for free. There’s also the option of paying for voluntary contributions to make sure you get the most from your state pension.”
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