£5,000 HMRC Payment For 210K Seniors Claim Process: Know Eligibility & Payment Dates

A significant underpayment issue affecting senior UK citizens has been identified by HM Revenue and Customs (HMRC), leading to the announcement of a one-time payment of £5,000 for around 210,000 senior pensioners.

This payment is to address missing National Insurance (NI) Credits and Home Responsibilities Protection (HRP), which resulted in underpaid state pensions for women who claimed child benefits between 1978 and 2000.

This article breaks down the eligibility, payment dates, and key information for those affected.

What is the £5,000 HMRC Payment?

The £5,000 HMRC payment is part of a compensation effort targeting pensioners, primarily women, who are owed backdated payments due to administrative errors.

These errors relate to missing Home Responsibilities Protection (HRP) credits that should have been recorded on National Insurance accounts for people who claimed child benefits but did not have the necessary NI credits applied.

These missing credits led to underpayments of state pensions, particularly affecting women who claimed child benefits between 1978 and 2000.

The Department for Work and Pensions (DWP) estimates that around 210,000 seniors are affected by this underpayment, amounting to approximately £1.3 billion. Each affected individual could receive a lump sum of about £5,000.

Eligibility for the £5,000 HMRC Payment

To qualify for the £5,000 payment, individuals must meet specific criteria related to their National Insurance records and child benefit claims. Here’s a breakdown of the eligibility requirements:

1. Claimants of Child Benefits Between 1978 and 2000: The error affects those who claimed child benefits during this period but did not have their National Insurance records properly updated with HRP credits.
2. National Insurance (NI) Record Errors: The missing HRP credits resulted in underpayments of state pensions, which disproportionately affected women. Claimants who reached state pension age after April 5, 2010, should check their NI records to confirm missing HRP credits.
3. Child Benefit Claimed in Own Name: The child benefit must have been claimed in the individual’s own name, rather than a partner’s.
4. Children Under 16: The child for whom the benefit was claimed must have been under the age of 16 at the time.
5. No Reduced Stamp for Married Women: Claimants must not have paid a reduced rate of NI contributions, commonly known as the “married women’s stamp.”

How to Check Eligibility:

• Review National Insurance Records: Those affected can check their NI records online through the UK Government website to identify missing HRP credits.
• State Pension Records: Pensioners can also review their state pension records to check for any underpayments related to this issue.
• Contact HMRC: For assistance, claimants can contact the National Insurance Helpline or use the online checker tool provided by the government to confirm their eligibility.

Payment Dates for the £5,000 HMRC Payment

Although HMRC and DWP have announced this repayment scheme, exact payment dates have not yet been confirmed.

However, the process has already begun, and the HMRC expects to resolve these issues and make payments over the next 18 months.

• Letters to Affected Individuals: HMRC began contacting affected individuals in late 2023, with seniors in their 60s and 70s being prioritized.
• Processing in Early 2024: The correction process began in early 2024, with payments expected to be disbursed as errors are confirmed and corrected.

How to Claim the £5,000 HMRC Payment

Claimants will not need to manually apply for the £5,000 payment if they are eligible. HMRC is contacting those affected directly via letters, commonly referred to as “brown envelopes.”

These letters inform the recipients of their entitlement and provide instructions on how their payments will be processed.

For those who believe they may have been underpaid but have not yet been contacted, it is recommended to:

1. Check National Insurance Records: Review your NI records to see if HRP credits are missing.
2. Use the Government’s Online Checker: The UK Government provides an online tool that helps individuals check their HRP credit status.
3. Submit a CF411 Form: If HRP credits are missing, individuals can submit a CF411 form to claim missing HRP credits.
4. Contact the National Insurance Helpline: For additional help, individuals can contact the helpline to verify whether their pension payments have been impacted.

Latest Updates on the £5,000 HMRC Payment

The HMRC is actively working with the DWP to address this underpayment issue. As part of a correction campaign, HRP credits will be added to the National Insurance records of affected individuals for the period between 1978 and 2010.

This process aims to ensure that everyone receives the correct amount owed.

The DWP has acknowledged the issue and is prioritizing payments for seniors in their 60s and 70s, many of whom are most impacted by the shortfall in their pension payments.

The deceased claimants’ families may also receive compensation, with payments averaging £3,000 for those estates.

The £5,000 HMRC payment is a critical correction aimed at addressing pension underpayments that have affected thousands of UK seniors.

If you or someone you know claimed child benefits between 1978 and 2000, checking your National Insurance record for missing HRP credits is essential.

Eligible claimants will receive their payments over the next 18 months, and for those unsure of their status, reviewing their pension and NI records can provide clarity.

FAQs