Latest news with #NationalInsurance
Daily Mirror
2 hours ago
- Health
- Daily Mirror
DWP issues update as 630,000 households owed up to £12,000 after PIP error
PIP is a benefit that is awarded to people who may need extra help with day-to-day activities due to an illness, disability or mental health condition Personal Independence Payment (PIP) benefit claimants could still be owed cash from the Department for Work and Pensions (DWP) following a major payment error. PIP is a benefit that is awarded to people who may need extra help with day-to-day activities due to an illness, disability or mental health condition. It comes in two parts - the daily living rate, and the mobility rate - and you can be entitled to both or just one of these, depending on how your condition affects your life. Most people must undertake a health assessment where a point system is used to determine how much PIP you are eligible for. However, a Supreme Court ruling in July 2019 - known as the MM judgement - changed the way the DWP defines "social support" in relation to one of the daily living questions. Following the ruling, the DWP had to change how it assesses the need for social support when engaging with other people face to face, as part of the PIP assessment. It means hundreds of thousands of PIP claimants were due additional points for this activity. The DWP launched an administrative exercise back in 2021 - but in a new update, it has been revealed that hundreds of thousands of cases still need to be reviewed. An estimated 633,338 households receiving PIP are thought to have been affected. Of this figure, the DWP has reviewed 527,745 cases and paid out £250million. This means there are still 105,593 cases waiting to be reviewed. The average payout is £5,285 each - however, some payments will be higher, and some lower. One claimant was entitled to a £12,000 back payment. There are other PIP errors also being corrected by the DWP. This includes PIP claimants who did not have their claim processed because they didn't have a National Insurance – despite an NI number not being needed for a claim. Some 455 cases of this were reviewed in the last year with £500,000 paid out. The DWP has also paid out £13million to Scottish PIP claimants who mistakenly saw a "loss of entitlement" when they tried moving over to the Adult Disability Payment (ADP). Almost 4,700 records of this have been reviewed, with another 176 cases still to be looked at. The daily living rate of PIP is worth £73.90 a week if you're awarded the lower rate, or £110.40 a week for the higher rate. The mobility rate is worth £29.20 a week for the lower rate, or £77.05 a week for the higher rate. PIP is paid every four weeks, so if you're awarded the maximum rates for both the daily living and mobility elements, then you would get £749.80 every four weeks.
Daily Record
2 hours ago
- Business
- Daily Record
People due to retire need to claim New State Pension or first payment will be delayed
The first payment might also be higher or lower than expected even with full National Insurance contributions. The latest statistics from the Department for Work and Pensions (DWP) show the State Pension currently provides regular financial support for nearly 13 million older people across the country, including over one million retirees living in Scotland. This payment is available for those who have reached the UK Government's eligible retirement age, which is currently 66 for both men and women, and have paid at least 10 years' worth of National Insurance Contributions. However, people approaching the official age of retirement this year may not be aware that the State Pension is regarded as a contributory benefit and is not paid automatically by the DWP. The payment needs to be claimed, or retirees could face a delay in receiving their first payment of up to £230.25 each week, or £921.00 every four-week pay period. The money is not paid automatically when someone reaches State Pension age as some people choose to defer making a claim in order to keep working and generate more towards their pension pot, especially if they have not paid the full quota of 35 years' worth of National Insurance Contributions, or were 'contracted out'. DWP guidance explains: 'You do not get your State Pension automatically - you have to claim it. You should get a letter no later than two months before you reach State Pension age, telling you what to do.' It then clarifies you can either claim your State Pension or delay (defer) claiming it. It states: 'If you want to defer, you do not have to do anything. Your pension will automatically be deferred until you claim it.' Which means, unless you respond to the letter confirming you want to start claiming State Pension, you will not receive any payments as the DWP will interpret no response as a wish to defer. Deferring your State Pension could increase the payments you get each week when you decide to claim it, as long as you defer for at least nine weeks. Your State Pension increases by the equivalent of 1% for every nine weeks you defer, this works out as just under 5.8% for every 52 weeks. The extra amount is paid with your regular State Pension payment, however, it's important to be aware any extra payments you get from deferring could be taxed - find out more on here. it's also important to be aware deferred State Pensions increase each year in line with the September Consumer Price Index (CPI) inflation rate and not the highest measure of the Triple Lock policy. State Pension payments Full New State Pension Weekly payment: £230.25 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 Four-weekly payment: £705.80 Annual amount: £9,175 Your first payment Your first payment will be within five weeks of reaching State Pension age and you will get a full payment every four weeks after that. You might get part of a payment before your first full payment. The letter will tell you what to expect. You can also choose to receive your State Pension payments weekly or fortnightly which will result in a shorter delay for the first payment - find out more here. Your State Pension payment day The day your State Pension is paid depends on your National Insurance number. Last two digits of your National Insurance number: 00 to 19 - paid on a Monday 20 to 39 - paid on a Tuesday 40 to 59 - paid on a Wednesday 60 to 79 - paid on a Thursday 80 to 99 - paid on a Friday DWP 'starting amount' for the new State Pension If you have qualifying years on your National Insurance record as at April 5, 2016, DWP works out a 'starting amount' for you for the new State Pension. It is the higher of either: the amount you would have got under the previous State Pension system up to 6 April 2016, or the amount you would get on your record to 6 April 2016 if the new State Pension had been in place at the start of your working life Both amounts reflect any periods when you were contracted out of the Additional State Pension. Your 'starting amount' could be less than, more than or equal to the full new State Pension. If your 'starting amount' is less than the full amount of the new State Pension Each 'qualifying year' you add to your National Insurance record after April 5, 2016 will add a certain amount (about £6.57 a week, this is £230.25 divided by 35) to your 'starting amount', until you reach the full amount of the new State Pension or you reach State Pension age, whichever happens first. If your 'starting amount' is more than the full amount of the new State Pension You will get this higher amount when you reach State Pension age. It is possible to have a starting amount higher than the full new State Pension if you have some Additional State Pension. The difference between the full new State Pension and your 'starting amount' is called your 'protected payment'. If your 'starting amount' is equal to the full new State Pension You will get the full new State Pension when you reach State Pension age. How can I find out how much State Pension I could get? You can get a State Pension forecast online from the Check your State Pension service here. This provides personalised information, including your State Pension age, an estimate of how much State Pension you may get at that point and if you can increase this amount. It also allows you to view your National Insurance contribution history. More information about deferring your State Pension can be found on the website here.
Daily Mirror
3 hours ago
- Business
- Daily Mirror
Martin Lewis urges parents to check if they are owed '£10,000s' by HMRC
For UK households that had children between 1978 and 2010, HMRC has issued a letter notifying them of an error Martin Lewis is encouraging parents who had children between 1978 and 2010 to check if they are owed a hefty sum of £10,000. This cash is linked to back taxes owed by UK households that took time off work during those years, with HMRC utilising National Insurance (NI) records to identify as many people as possible. On X, the money-saving expert warned: " State Pension error! Did you take time off work (1978 to 2010) to look after children or someone with long term disability? You could be owed £10,000s. "In brief: 100,000s wrongly have Nat Insurance gaps that reduce your State Pension as they should've got 'Home Responsibilities Protection'. The Govt was contacting people, but isn't any longer. Thus the onus is on YOU to proactively check. "Cilla emailed us, "I've just received 15yrs' back pay from HMRC of £31,674 for underpayment of my pension. Thank you." Brits could be due an average of £5,000 in back payments, according to the accounting experts at Robson Laidler. A spokesperson for Robson Laidler clarified: "It is estimated tens of thousands of people are due an average of £5,000 in back payments. HMRC and DWP are also conducting a wider campaign to ensure that everyone who may be eligible is aware of the corrections exercise." They further advised: "We would therefore advise checking your own NI records rather than waiting for a letter from DWP/HMRC to arrive. There is no time limit for applying for HRP if it has not been awarded. "Anyone who may have claimed Child Benefit before May 2000, when it was not mandatory to provide your National Insurance Number on your claim, may not have the correct number of years for State Pension purposes on their NI record, if you first made a claim after May 2000, you will not be affected." HMRC has stated: "HMRC will send you a letter if we think you may have missing Home Responsibilities Protection (HRP). "We want to help you make sure you receive the right amount of State Pension, so we're asking you to check if you were eligible for HRP between 1978 and 2010. "You may have been eligible if you received Child Benefit for a child under 16. The letter will tell you how you can check if you're eligible to claim missing Home Responsibilities Protection and how to make a claim." Those uncertain whether they've been underpaid have been encouraged to examine their state pension and National Insurance record - if there are missing years in your National Insurance record between 1978 to 2010, then you might be lacking HRP. You can submit a claim for missing HRP by utilising the online service on
Daily Mirror
5 hours ago
- Business
- Daily Mirror
Ex-DWP worker urges parents to claim Child Benefit even if they are not eligible
Sandra Wrench, who boasts 42 years' experience dealing with State Pensions and benefits, explained that there are three key reasons why parents should claim Child Benefit A former Department for Work and Pensions (DWP) worker with 42 years of experience in State Pensions and benefits is strongly advising all parents to claim Child Benefit. And she said they should do it even if they're not eligible for the payment part from HM Revenue and Customs (HMRC). Sandra Wrench has highlighted three main reasons to claim Child Benefit. These are to increase National Insurance credits, ensure your child gets their National Insurance number, and to boost your State Pension, reports the Daily Record. Speaking to the Daily Record, she said: "With the introduction of the High Income Child Benefit Charge in January 2013, some parents whose earnings exceed the limit of £50-£60,000 have not bothered to submit a claim to Child Benefit after January 2013, as they are not entitled to the payment of Child Benefit. However, from April 2024 the earnings limit increased to £60,000 - £80,000." She went on to say: "If your earnings exceed, it is essential that you still claim Child Benefit, but opt out of the payment. By opting out of the payment of Child Benefit, you do not then have any problem with HMRC chasing you for any overpayments. HMRC not only wants the Child Benefit repaid, but can also fine you." She added: "By opting out of the payment, this saves you having to complete any Tax Self Assessment, as regards child benefit." Parents can opt out of receiving Child Benefit payments by ticking a box in section 4 on the Child Benefit claim form. Key reasons to claim Child Benefit Sandra explained that there are three reasons for claiming Child Benefit, even if you opt out of the payment. National Insurance Credits You are entitled to NI (National Insurance) credits until the child reaches age 12. You get one credit for each week you have claimed child benefit, so 52 credits for a complete tax year gives you a qualifying year towards your State Pension. If you then have another child, your NI credits continue until the second child is 12. If your child was 12 in February, you would get NI Credits until the child was 12 in February. If you had not returned to work when your child was 12, so you had a part qualifying year from April to February, you could make it a qualifying year by paying Voluntary Class 3 contributions. So check your NI record on a regular basis, for any part qualifying years as well - you can do this on here or call HMRC NI helpline on 0300 200 3500. National Insurance Number Sandra explained: 'You need to make a claim to Child Benefit for your child to be automatically issued with a National Insurance Number (NINO) at age 16. If you do not register for Child Benefit, your child will not automatically receive a NINO at age 16, but will have to apply for a NINO." When you register a child with Child Benefit Centre, the child is allocated a NINO at that stage, which is then issued to the child at age 16. Specified Adult Child Care Credits If you return to work when your child is still under 12, and you pay NI contributions because you are working, you do not need the NI Child Benefit Credits. So if a family member, under State Pension Age (SPA), such as a grandmother or grandfather, is looking after the child under 12 while the parent is at work, the parent can pass the NI Child Benefit credits to that other family member. The credits can then be used by this other family member towards their own State Pension, if they have given up work. These NI Credits are then known as Specified Adult Child Care Credits, and you apply for them through HMRC. HMRC will not award the credits to this other family member without first checking that the parent has a qualifying year from working. You can only apply for these credits if the parent has claimed child benefit. More information on Specified Adult Child Care Credits can be found on here. NI Credits for Child Benefit If a claim for Child Benefit is made late, the claim can only be backdated three months, which means that NI Credits for Child Benefit can only be backdated three months as well. Sandra explained how this has resulted in some women losing out on the NI Credits for Child Benefit which would count towards their State Pension. This was reviewed by the UK Government in April 2023, and NI Credits can now be backdated to the birth of the child, so if you have missed out on these NI Credits, you will be able to claim these credits from April 2026. NINOs issued to 16 year olds, and change of address Sandra said: 'Please ensure you notify HMRC/ Child Benefit of any change of address as the NINO will be sent to your 16 year old at your last known address. 'With parents opting out of the payment of Child Benefit due to the High Income CB Charge, it is essential that parents notify the Child Benefit Centre of any change of address, so the NINO for their child is sent to the correct address. If a parent is not in receipt of Child Benefit, it becomes easy for a change of address to be overlooked and not notified to the relevant department. Child Benefit rates 2025/26 The new rates started on April 7: Eldest or only child - £26.05 a week Additional children - £17.25 a week per child Child Benefit is payable until the child is 16, or up to age 20 if the child is staying in approved education or training. Sandra warned: 'Do not confuse the actual payment of Child Benefit with NI Credits for Child Benefit - the payment of Child Benefit you get for the child up to the age of 16, the CB NI Credits are only available until the child reaches the age of 12. Full details on Child Benefit can be found on here. You can also contact the Child Benefit helpline is 0300 200 3100.
Daily Mirror
5 hours ago
- General
- Daily Mirror
State pension error - what it is and how you can check if you're owed money
Thousands are people are feared to have missed out on an old version of National Insurance credits, known as Home Responsibilities Protection (HRP) A major state pension error could mean you're owed tens of thousands of pounds back from the Department for Work and Pensions (DWP). How much state pension you get in later life is dependent on your National Insurance record. For example, with the new state pension, most people need 35 years of National Insurance contributions to get the full amount. If you're out of work, you may be entitled to National Insurance credits and these essentially fill any gaps in your National Insurance record. But thousands are people are feared to have missed out on an old version of National Insurance credits, known as Home Responsibilities Protection (HRP). HRP reduced the number of qualifying years you need on your National Insurance record to claim the state pension. It was replaced by National Insurance credits in 2010. Who is affected by this error? HRP should have been applied automatically to those claiming Child Benefit - but Child Benefit forms submitted before 2000 did not include a National Insurance number. This led to HRP not being correctly applied to National Insurance records. It also impacted those claiming Income Support while they were caring for a person with a disability or long-term illness. If you didn't have the correct level of HRP applied to your National Insurance record, then you may have been underpaid the state pension and are owed money back. You may be affected if you took time off work to look after a child, or a family member with a long-term disability or illness, between 1978 and 2010. It is thought the main group of people who are affected are women in their 60s or 70s. Latest figures from HMRC shows 370,000 women have been contacted regarding potential underpayments, with the Department for Work and Pensions (DWP). Of those who responded to the letters, HMRC identified 5,344 cases of underpayments between January 8 and September 30, 2024, totalling approximately £42million in arrears. How much could I get back? It all depends on how much you were underpaid by, and for how long. The latest figures from the DWP show the average payout per person is £7,859. But for some people, the money back has been in the tens of thousands of pounds. For example, one person called Cilla wrote in to to explain how to reclaimed more than £31,000 in backpay. She said: "I've just received 15yrs' back pay from HMRC of £31,674 for underpayment of my pension. Thank you." How do I know if I've been underpaid? If you are not receiving the full state pension, you should first check your state pension forecast or statement. The full new state pension is worth £230.25 per week, while the old basic state pension is £176.45 per week. If it looks like you are missing gaps, the next step is to check your National Insurance record. The Government has also created an online checker tool on You can make a claim for missing HRP by using the online service on or by filling out this form and posting it back to HMRC. It is believed 43,000 people who are due money back are now deceased, but their families can claim on their behalf.
