Pensioners warned not to bin HMRC letter as they could be owed £10,000s

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Martin Lewis’ Money Saving Expert has urged people to look out for a letter from HMRC as they could be owed tens of thousands of pounds.

The revenue body is writing to hundreds of thousands of people who may be missing out on their state pension.

In the latest Money Saving Expert newsletter, the group said: “This isn’t a scam, so DON’T ignore the letter.”

The issue mostly affects women who may be missing Home Responsibilities Protection element from their National Insurance record.

The letters are going out in phases with those aged over state pension age being contacted in the first place.

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Officials also estimate that some 165,000 state pensioners have been underpaid because of historical errors related to married women, widows and people aged over 80.

Pensions minister Laura Trott said officials have reviewed an average of 30,000 cases each month between November 2022 and March 2023.

She said: “Based on our current trajectory, the department expects to complete the exercise for Category BL and Category D cases by the end of 2023. For missed conversion cases, the exercise could run through to late 2024.”

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Category BL refers to the lower basic state pension, who reached state pension age before April 6, 2016. People in this category may have been underpaid if they did not get an increase they were due through their husband, wife or civil partner.

Category D refers to people on the over 80 state pension rate – people who received less than this amount may be owed money.

An individual can check how much state pension they are entitled to using the state pension forecast tool on the Government website.

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The full basic state pension is currently £156.20 a week while the full new state pension is £203.85 a week.

State pension payments are expected to increase 8.5 percent next year, with the average earnings increase metric likely to determine the increase, in line with the triple lock.

However, there have been reports the Government is considering using the figures for the increase in average earnings without bonuses, which would mean a lower 7.8 percent increase next April.

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