The DWP has clarified what happens if a person has overpaid voluntary National Insurance (NI) contributions as it investigates historical state pension underpayments.
Thousands of older Britons could be due payments worth up to £12,400 with payments going out by the end of 2024.
As some of the cases relate to Home Responsibilities Protection not being recorded properly on NI records, Express.co.uk asked if there was a possibility some people may have needlessly topped up their NI contributions, and if they would be refunded.
The DWP confirmed that if there were any voluntary overpayments, people are entitled to a refund.
A Government spokesperson said: “The action we are taking now is correcting historical underpayments made by successive governments – and our priority is ensuring everyone receives the financial support to which they are entitled.
“HMRC has begun writing to those likely affected by issues related to the historical recording of Home Responsibilities Protection on the National Insurance records for people who first claimed Child Benefit before May 2000.”
DWP officials have looked at 600,000 state pension awards in its operation between January 11, 2021 and October 31, 2023.
Average payouts due range between £2,245 and £12,383. The issue mostly affects women, including married women, those in a civil partnership, widows and those over 80.
“HMRC has begun writing to those likely affected by issues related to the historical recording of Home Responsibilities Protection on the National Insurance records for people who first claimed Child Benefit before May 2000.”
The DWP confirmed earlier this year it is ‘on track’ to complete the exercise by the end of this year for married women (category BL) and those over 80 (category D).
In 2020, the DWP became aware of a number of individuals who had not had their state pension increased automatically when this should have occurred.
There are three broad categories of state pension underpayments:
- Cases covered by the ongoing state pension underpayments (Legal Entitlements and Administrative Practice exercise
- Home Responsibilities Protection (HRP) cases where HRP has not been recorded accurately on National Insurance records
- Cases where National Insurance credits need to be updated for people who were claiming Universal Credit.
State pension underpayment progress – October 2023
The number of cases reviewed, arrears identified and payments made between January 2021 and October 2023 are listed below.
Married (Cat BL)
- Cases reviewed: 270,024
- Underpayments identified: 37,488
- Average arrears: £5,931
- Total amount repaid: £220.3 million
Widowed (Cat B)
- Cases reviewed: 240,786
- Underpayments identified: 17,894
- Average arrears: £12,383
- Total amount repaid: £219.9 million
Over 80 (Cat D)
- Cases reviewed: 83,154
- Underpayments identified: 26,941
- Average arrears: £2,245
- Total amount repaid: £56.7 million.
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