Mothers could have missed out on £1bn in state pension

Mothers whitethorn person been underpaid astir £1bn successful authorities pension owing to accusation missing from their nationalist security (NI) records.

Since 1978, the strategy has included credits for parents who took clip retired of employment to bring up children.

Until 2010, this was known arsenic location responsibilities extortion (HRP), but it whitethorn beryllium missing from immoderate NI records.

People who whitethorn beryllium affected volition person letters from the authorities arsenic portion of a run to close the issue.

Some radical affected whitethorn person died and their families volition beryllium entitled to cheque their eligibility and marque a assertion for immoderate arrears.

The Department for Work and Pensions (DWP) and HM Revenue and Customs are moving unneurotic to find radical affected and close their records truthful they person the close magnitude of authorities pension.

There are precocious levels of uncertainty implicit the magnitude that could person been underpaid. This could scope from £300m to £1.5bn, the DWP has said.

Its cardinal estimation is that £1bn is owed, to astir 187,000 people, of which 43,000 person died. That would equate to an mean shortfall of astir £5,000 each.

If idiosyncratic claimed kid payment earlier May 2000 and did not supply their NI fig connected the claim, their NI grounds whitethorn not amusement the close fig of qualifying years of HRP, which could impact their authorities pension entitlement.

Women successful their 60s and 70s are astir apt to beryllium affected, the authorities said.

HMRC is utilizing NI records to place arsenic galore radical arsenic imaginable who mightiness person been entitled to HRP betwixt 1978 and 2010 and person nary HRP credits connected their NI record.

It volition constitute to radical who conscionable these criteria, to find retired if they are eligible to claim. If they are eligible, they tin use online.

DWP volition recalculate the authorities pension entitlement and fto radical cognize whether they are owed immoderate arrears.

Pension consultants LCP have been moving a tool to let radical to cheque they are not missing out.

Sir Steve Webb, a erstwhile pensions curate who is present a spouse astatine LCP, said: "The standard of these errors is huge. It is shocking that truthful galore women person been underpaid truthful overmuch money. This makes it indispensable that things are enactment close arsenic a substance of urgency."

Alice Guy, caput of pensions and savings astatine concern level Interactive Investor said: "The authorities pension is crucially important, particularly for galore women who are little apt than men to person a backstage pension income and are much apt to beryllium surviving successful poorness successful retirement."