A former DWP employee explains who will benefit from a State Pension pay boost and who might end up losing out. Thousands of women could be due a letter from HM Revenue and Customs over the next few months letting them know their National Insurance (NI) record may contain missing periods of Home Responsibilities Protection (HRP) which in turn has affected the level of Basic or New State Pension they are entitled to. Some 210,000 women in their 60s and 70s may be entitled to a back payment and higher State Pension payments due to historical errors, however, a former employee at the Department for Work and Pensions (DWP) has warned that while anyone who thinks they may have been affected can make a claim for HRP online, it could have an adverse affect on their finances if they already receive Pension Credit.
The ex-DWP staff member with 42 years experience working with welfare benefits and the State Pension explained: “If you are in receipt of Pension Credit, any increase in State Pension may mean that you are no longer entitled to Pension Credit, so in some cases it might not be worth claiming HRP and getting the increased amount of State Pension.” The latest DWP update indicates that some £1.5 billion has been underpaid in State Pensions.
However, the former benefits expert also said that the amount of back payment someone receives will depend on the amount of National Insurance (NI) contributions transferred from their spouse to their own State Pension. She explained: �.