01 November 2023 , 14:25
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Martin Lewis has spoken out to warn people to look out for an important letter coming from the government over the coming weeks. According to the financial expert, the document, from HMRC, could be worth thousands - especially if you're a woman.
"Do not bin them! They are not scams, this is crucial," Martin urged as he explained exactly what the letter is and who will benefit from it.
He was speaking on the first episode of the new series of The Martin Lewis Money Show Live on Tuesday night, telling viewers: "His Majesty's Revenue and Customs is sending letters to hundreds of thousands of over 65s, 66 and older. The letter will be titled 'You may be eligible for Home Responsibilities Protection'. I know, sexy title, but that's what it will say!"
He continued: "It's mainly for women and it can be worth thousands of pounds or in some cases, tens of thousands. I got a success on this today, 30 grand, that's why I say don't bin it. Younger people will be able to do this later or you could look into doing it now but you will get your letters later. It's basically because those who were caring for their family and not working should have been getting National Insurance boosts but weren't."
Those impacted are mostly women who took time off work for childcare between 1978 and 2010. The issue is they may have Home Responsibilities Protection (HRP) missing from their National Insurance records - which can have a big impact on their state pensions.
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HRP, which was replaced by National Insurance Credits in April 2010, was a scheme to help protect parents' and carers' entitlement to State Pensions. The amount of State Pension someone gets is based on their National Insurance record and the number of 'qualifying years' they have. Therefore, 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. And this may affect their State Pension entitlement.
The average amount owed, according to HMRC, is around £5,000. But it could be as high as £10,000 depending on how many missing years you have. The letters are being sent out in stages with those over 66 years old set to receive them first, with the second round of letters set to be sent to those close to the retirement age. If you have received this letter and checked they are genuine by contacting HMRC, then you will be asked to check whether you were eligible for HRP between 1978 and 2010. You can do this online on the GOV.UK website . You can also do this through the post but you will first need to fill out a form on the government website.
The government has said that the total amount underpaid could be around £1.3billion, with 210,000 people potentially affected - of this figure, 60,000 are now deceased. In these cases, their families will be entitled to check their eligibility and make a claim for any arrears. Of the 210,000 people affected, the DWP expects to track down around 187,000.