The Department for Work and Pensions (DWP) has been criticised for failing thousands of mothers who did not receive the full state pension they are entitled to. Millions of pounds remain unclaimed because many eligible women have not been reached by the government’s efforts.
This issue involves errors in women’s National Insurance (NI) records, which means some did not get the pension payments they deserved.
Millions Unclaimed Due to NI Record Errors
The DWP found mistakes in the NI records of some women that caused between £520 million and £1.22 billion of state pension payments to be unpaid. The amounts owed to each affected woman could be as high as £8,000.
These missing payments come from a scheme called Home Responsibilities Protection (HRP), which was available between 1978 and 2010. HRP helped reduce the number of years women needed to qualify for the state pension by protecting their NI record while they cared for children at home.
Attempts to Fix the Problem Are Struggling
The DWP is trying to correct these errors by contacting women who might be owed money, but this “correction” scheme is facing problems. Many women have not responded to the letters sent, and so far only £104 million has been paid out. This low response rate shows the government’s efforts are not reaching most of those who might qualify for back payments.
Experts Speak Out on the Issue
Steve Webb, a former pensions minister and partner at pension consultancy LCP, expressed disappointment over the failure to help most of the mothers who are owed money.
He pointed out that asking elderly women to follow a complicated two-step online process was unrealistic, especially because many are cautious about scams. Expecting them to check eligibility and submit claims online has discouraged many from applying.
Calls for Improved Action
Webb praised the DWP for researching why their approach was not working, but stressed the urgent need for better methods to ensure more women get the pension they deserve. He said it is crucial that the government improves outreach and support so that more mothers can claim what is rightfully theirs.
Many mothers have missed out on important state pension payments due to errors in their National Insurance records linked to the Home Responsibilities Protection scheme. Although the DWP is trying to fix this, the current approach of sending letters and relying on online claims has not worked well.
Experts warn that better action is needed to help thousands of women claim their rightful pensions and to ensure they receive the back payments owed to them.
FAQ
Q: What caused some mothers to miss out on their full state pension?
A: Errors in National Insurance records linked to the Home Responsibilities Protection scheme led to missed pension payments.
Q: How much money could mothers be owed due to these errors?
A: Some women could be owed up to £8,000 in missed pension payments.
Q: What is the Home Responsibilities Protection (HRP) scheme?
A: HRP was a scheme from 1978 to 2010 that reduced the number of qualifying years needed for women who stayed at home caring for children.
Q: Why is the DWP’s correction scheme failing?
A: The scheme relies on letters directing elderly women to an online claim process, which many find difficult or are wary of due to scams.
Q: What can be done to help more women claim their missing pension?
A: Experts suggest the government needs better outreach and support methods to help women complete claims and get the payments they deserve.
