Title: Steve Webb Helps Pensioner Reclaim £17k in Underpaid State Pension, Exposes HMRC Inefficiency
Introduction:
In a shocking revelation, Steve Webb, former Pensions Minister and agony uncle for This Is Money, has successfully aided a 75-year-old pensioner in reclaiming £17,000 in underpaid state pension. The pensioner had been underpaid for 15 years due to an error in their National Insurance (NI) record. However, despite their efforts and months of waiting, HM Revenue and Customs (HMRC) failed to rectify the issue. This case highlights the need for improved efficiency and transparency in the state pension system.
Body:
The pensioner, who had taken time off work to raise their family, contacted Steve Webb in January for assistance with their low state pension. Following Webb’s advice, the pensioner applied for ‘Home Responsibilities Protection’ (HRP) by submitting a claim form to HMRC in February. Despite the considerable wait, no response was received by July.
Webb explains that when an error in the NI record affects the state pension, the first point of contact should be HMRC, followed by the Department for Work and Pensions (DWP) for recalculating the pension and paying any arrears. However, he acknowledges that individuals often face prolonged delays in receiving an update on their state pension after NI record corrections.
To gauge the waiting time, Webb used HMRC’s tool, which estimated an eight-month wait for a response from the date the pensioner applied for HRP. Frustrated by the lengthy process, Webb intervened in the case, prompting HMRC to act swiftly. The pensioner was ultimately informed that they were entitled to 13 years of HRP, resulting in a weekly pension increase of £30 and arrears totaling over £17,000.
Webb also raises concerns about DWP’s lack of transparency and a tool similar to HMRC’s for estimating waiting times. When questioned, DWP declined to reveal the processing time but assured prompt responses to correspondence. Webb emphasizes the need for more transparency and shorter delays in reassessing state pensions.
Conclusion:
Steve Webb’s intervention in a pensioner’s underpaid state pension case sheds light on the inefficiencies within HMRC and DWP. The prolonged waiting times and lack of transparency in assessing state pensions are concerning. Webb’s success in reclaiming the pensioner’s £17,000 highlights the urgency for improvements in the system to ensure prompt payments and avoid financial difficulties among retirees.
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