UK ministers are keen to apply break clauses in contracts for asylum accommodation with outsourcers including Serco and Mears in an effort to renegotiate terms or end the deals.
Home Office ministers were “shocked” by the profits made by Serco, Mears and Clearsprings Ready Homes on multiyear contracts signed in 2019 and hope to use break clauses in 2026 either to revise the original terms or terminate, said two people briefed on their thinking.
“They [the companies] made way more than was originally envisaged because the asylum system became so out of control,” said one of the people. The Home Office was regularly bidding against other Whitehall departments for hotel and dispersal accommodation, driving up prices, the person added.
In 2019, the previous Conservative government overhauled the procurement of asylum accommodation. It said the changes would ensure vulnerable asylum seekers had access to support and set clear requirements for housing conditions, although human rights groups have continued to warn that some asylum accommodation remains unsafe.
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In the same year, 10-year contracts for asylum accommodation were awarded to Serco in the Midlands, North West and east of England, Mears in the North East and Yorkshire and the Humber, and Clearsprings in the south of England.
The contracts, which contained break clauses after seven years in 2026, will cost the state about £4.6bn in total, according to government procurement data provider Tussell. Tussell’s figures also include Mears contracts in Scotland and Northern Ireland, and a Clearsprings contract in Wales.
The three companies do not specify the returns made on the contracts. But last year Clearsprings, whose principal source of business is asylum contracts with the Home Office, reported an increase in operating profit to £62.5mn, from £1.9mn in 2019.
Its profit margin — the proportion of revenue that is profit — rose from about 3.5 per cent to 5.8 per cent in the same period.
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In corporate filings last year, Mears said its contract brought in about £440mn in revenues — up £90mn on the previous 12 months — and accounted for 40 per cent of total revenues. In 2019, the company said it expected the contract to account for roughly 15 per cent of total revenues.
Since 2021, Mears’ profits have jumped 83 per cent to £47mn, and last year it warned that losing the asylum contract in 2026 was a “principal risk” to its business. Shares in London-listed Mears closed down 13 per cent on Wednesday at £3.32, the lowest since February.
Serco won asylum contracts worth £1.9bn in 2019, the company’s largest-ever contract, and now accommodates more than 30,000 men, women and children.
It reported a 5 per cent increase in overall profits between 2022 and 2023 to £249mn, and this year noted that profit margins on UK and European work had increased from 3.4 per cent in 2022 to 6.8 per cent in the first half of 2024.
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Serco operates across a number of sectors and in different countries, but when it increased its profit guidance last year, the company said the decision was in part because of “robust demand for immigration services”.
Joe Brent, analyst at investment bank Panmure Liberum, said UK asylum contracts had been a “source of profit growth” to Serco.
“If Labour succeeds in reducing the company’s level of returns considerably, it will reach a point where Serco goes elsewhere,” Brent said. “There aren’t many contractors that can deliver this at scale. It’s risky, intense, complex work, where capital is deployed and they have to deliver a return.”
The government has vowed to end the use of hotels and mass accommodation sites to house asylum seekers, but it has struggled to reduce reliance on hotels even as some large-scale sites, such as the Bibby Stockholm barge, are set to close.
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The government has been spending more than £8mn a day on hotel accommodation for asylum seekers, and in recent weeks ministers have contacted hotel providers to procure extra spaces after a rise in small boat Channel crossings.
The Home Office did not respond to a request for comment.
Serco said it had won its contracts “following a competitive tender to ensure that value for money was achieved for the taxpayer”.
“We make low single-digit returns across our UK government business, and in the previous asylum accommodation contracts we lost more than £100mn,” it added, referring to contracts that ran between 2012 and 2019.
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Mears said its profits related to performance across all activities, not just asylum contracts, and that its improved financial performance since 2021 had “come from an artificially low base because of the impacts of the pandemic”.
The company also said its contracts with the government stipulated caps on the level of profits the company could make and arrangements to return “surplus profit” to the client. It did not say how much profit if any it had returned to the Home Office since 2019.
“Mears has, over recent years, returned to operating margins that would be recognised as appropriate in the sectors in which it operates . . . in line with the historical performance of the group,” it added.
The festive season is on and that can mean shopping and buying gifts but that often involves going through a dozen options to choose. With a host of deals available on many categories, including electronics, here’s a curated list of what smartphones, TWS as well as home speakers you can choose from to gift something that’s good value for money while offering a good user experience:
Smartphones:
Poco M6 (6GB + 128GB): For phones under Rs 10,000, the Poco M6 Pro is a really nice option with its large and sharp 6.74-inch LCD display. A decent set of cameras for the price tag, plus you also get a 3.5mm audio jack as well as NFC for contact-less payments if you want to use that feature via payment apps. Five minutes of adjusting and tweaking after the initial setup and you can get rid of unnecessary promotional notifications and apps to get a highly customisable OS in place and get a reliable day long battery life.
CMF Phone 1: With a different looking back panel that’s also interchangeable, the CMF Phone 1 is a well-performing smartphone that stands out from the crowd for not only its looks outside but also a neat and smooth UI inside. IP52 dust and water-resistant device comes with a fingerprint sensor and a nice 6.67-inch AMOLED display, plus a camera setup, including the front camera, that can take sharp photos given the price tag of Rs 14,999 it starts with.
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Realme GT 6T: If your budget is more around Rs 30,000, then the Realme GT 6T offers a lot of value that isn’t low on looks, performance as well as software support. Promised to get three Android upgrades and four years of security patches,the device is equipped with a quality higher refresh rate 6.78-inch AMOELD display, a capable set of cameras that are quick to capture and can take vivid shots when outdoors.
TWS
Oppo Enco Air3 Pro: While some of you might say these are over a year old, but the sheer audio quality and even noise cancellation offered by this Oppo pair are still the best for a price of Rs. 3,199. On top of that, these are comfortablo wearfor longer periods — be it while working or commuting. Also, it can be connected to two devices simultaneously so you can have your work and personal music playback sorted.
Sennheiser Momentum True Wireless 4: Available at Rs 17,990, these higher-end pair of true wireless earbuds offer clean and clear vocals, decent bass as well as good representation of background instruments. The pair is comfortable wear and does not disappoint in terms of battery life for calls or music. These buds are IP54 water and dust-resistant; in the box you not only get extra pairs of eartips of different sizes (which is standard) but also some silicone rounded stability fins for a betterfit.
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Speakers:
GOVO GoSurround 975: This soundbar is among the most bang for bucks in the Indian market today at Rs 8,499. With a host of connectivity options to use, the GoSurround 975 has a 2.1.2 audio system with a 6.5-inch sub-woofer included giving 400watts of output in total. You get clear dialogues, something a lot of TVs would struggle with, while also handling music playback well enough to fill in a medium sized room, plus, it doesn’t lack in giving deep bass for those who prefer that with their TV series and movie watching experience.
Beats Pill: For a price of Rs 16,990, given its size and weight, the Pill is heavy on the loudness and can be used for any music playback outdoors for a very small gathering. You can pair it over Bluetooth as well as with a USB type C cable for lossless playback. Bass output is heavy while having clear vocals alongside smooth background instruments playback.
Smartwatch:
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Redmi Smartwatch 5 Active: Available at a discounted price of Rs 2,599, the watch has reliable tracking for step counting and for pushing notifications from your connected smartphone. It’s fitted with a heart rate monitor, SpO2 as well as has stress monitoring and sleep tracking functions. The smartwatch has generally smooth UI when in use, plus you get over two weeks of battery life (no always-on display) on it.
OnePlus Watch 2: For a bit higher end, available for Rs 19,999 currently, there’s the OnePlus Watch 2 that has a great battery life, good looks (probably more targeted towards men) as well as a responsive WearOS. The 1.43-inch display is bright for outdoors use and it can also connect with a pair of wireless earbuds for music playback on the go. Though there’s no 4G/LTE option, the watch itself has many sensors for fitness conscious such as accelerometer, gyroscope, optical heart rate sensor, optical pulse oximeter, geomagnetic sensor, light sensor, barometer, and PPG.
MILLIONS of workers could end up with less money in retirement under new government plans which are being considered.
Experts have warned that Britain will face a “retirement crisis” and it would “cause havoc” if the Chancellor imposes national insurance on employers’ pension contributions in her budget next week.
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Rachel Reeves is expected to announce a range of changes in the Budget next weekCredit: PA
The move is predicted to raise £15.4 billion, which would help to plug a £40 billion funding gap in the public finances.
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Meanwhile, experts suggest that public sector businesses such as National Health Service workers, teachers and government employees could be spared the change.
If these workers were included then it could mean that public sector budgets would need to be significantly cut, which could worsen their service.
It would cost the government millions of pounds to implement this change so only businesses and private-sector workers will feel its impact.
The decision to increase national insurance on employers’ pension contributions could leave millions of workers with lower wages and less generous pensions.
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Felicia Hjertman, CEO of investment platform TILLIT, said the decision could worsen Britain’s retirement savings.
“Britain is on the brink of a retirement crisis,” she said.
“Increasing employers’ national insurance contributions on private pensions is a step in the wrong direction.”
While Baroness Ros Altman added: “This kind of change would cause havoc for UK pensions and derail the success of auto-enrolment.
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“Because of the prevalence of salary sacrifice arrangements in auto enrolment pensions across all employers, and the widespread problems already known in pensions administration due to excessively complex rules, any such sudden significant change in the Budget will create havoc for many employer schemes and would be seriously ill-advised.”
How does national insurance work?
Employers currently pay national insurance for most workers earning more than £9,100 a year.
The amount they pay is equivalent to 13.8% of the employees earnings above this figure.
So for an employee earning £30,000 the employer would pay £2,884.20 in national insurance.
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Former pensions minister Steve Webb estimates that putting the national insurance rate up by 1% could raise £8 billion a year.
What could it mean for me?
If employers have to pay more tax then their costs will go up, so they would need to save money elsewhere.
What are the different types of pensions?
WE round-up the main types of pension and how they differ:
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Personal pension orself-invested personal pension (SIPP) – This is probably the most flexible type of pension as you can choose your own provider and how much you invest.
Workplace pension – The Government has made it compulsory for employers to automatically enrol you in your workplace pension unless you opt out. These so-called defined contribution (DC) pensions are usually chosen by your employer and you won’t be able to change it. Minimum contributions are 8%, with employees paying 5% (1% in tax relief) and employers contributing 3%.
Final salary pension – This is also a workplace pension but here, what you get in retirement is decided based on your salary, and you’ll be paid a set amount each year upon retiring. It’s often referred to as a gold-plated pension or a defined benefit (DB) pension. But they’re not typically offered by employers anymore.
New state pension – This is what the state pays to those who reach state pension age after April 6 2016. The maximum payout is £203.85 a week and you’ll need 35 years of National Insurance contributions to get this. You also need at least ten years’ worth to qualify for anything at all.
Basic state pension – If you reach the state pension age on or before April 2016, you’ll get the basic state pension. The full amount is £156.20 per week and you’ll need 30 years of National Insurance contributions to get this. If you have the basic state pension you may also get a top-up from what’s known as the additional or second state pension. Those who have built up National Insurance contributions under both the basic and new state pensions will get a combination of both schemes.
They may do this by increasing the price of their products for customers, giving employees smaller pay rises or reducing the amount that they pay into employees’ pensions.
Employers currently have to pay in at least 3% of an employee’s salary into their pension each month.
The employee then pays 5% of their salary in, bringing the total contribution up to 8%.
But some companies offer much more generous packages and may pay in up to 10% of an employees’ salary.
These packages could be cut if the planned changes come into effect.
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Sir Steve Webb said: “Changing national insurance contributions could leave hundreds of thousands of people with a poorer retirement.
“People are not saving enough money for their retirement as it is. This could mean even more people are not saving enough.”
Tom Selby, director of public policy at AJ Bell, said only taxing private sector workers would be difficult to explain.
“Applying national insurance to private sector companies while giving the public sector a get-out-of-jail-free card would be more difficult to justify,” he said.
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“Particularly given public sector pensions are far more generous than their private sector equivalents.”
How would it affect different schemes?
There are concerns that introducing national insurance on pension contributions could undermine salary sacrifice schemes.
At the moment some employers offer schemes where employees can give up part of their salary, which is then paid directly into their pension, avoiding tax.
If national insurance is applied to an employer’s pension contribution then it could remove the incentive for companies to offer these schemes.
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If these schemes were removed then it could mean that employees have to pay tax on their pension contributions, which would reduce the amount they pay into their nest egg.
What else could be announced in the budget?
The Chancellor is expected to freeze income tax thresholds in the Budget, which could drag 1.5 million pensioners into higher tax bands.
The State Pension is expected to rise by 4.1% in April, equivalent to a boost of £473.
A single pensioner would see their income rise from £221.20 to £230.30 a week.
Only about one in 20 estates now attract inheritance tax but it is still known as Britain’s most hated tax.
Rachel Reeves is considering whether to make changes to the exemptions, allowances and reliefs available at the moment.
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For example, the Government could decide to reduce the amount that you can give to a friend or family member before you die.
It could also reduce the seven year rule, which currently allows someone to give away items or money to friends and family tax free so long as they live for seven years afterwards.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
The lights may be dimming for India’s electric car momentum, but if you ask auto industry mandarins, it is very much the right way forward.
Sales of electric cars specifically have tanked in recent months, after the expiry of the previous subsidy scheme FAME 2 back in the summer. While a new one, the PM E-Drive scheme has just been launched, it leaves out any subsidy for electric four-wheelers, in a move that has surprised many.
However, Society of Indian Automobile Manufacturers (SIAM) president Sailesh Chandra downplayed this, arguing, “The PM E-Drive is comprehensive, with an outplay of Rs 10,000 crore…and has a very specific target.”
He also pointed out that during the previous FAME incentives, the four-wheeler rebates were only for fleet sales, ie, sale of electric cars to taxi service operators, and not for individual buyers.
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“The bigger problem for personal EV car customers is the charging infra barrier,” Chandra added, “It’s a chicken-and-egg situation.”
There is a 2,000 crore government outlay for setting up around 22,000 EV charging ports across the country. SIAM officials expressed the hope that this could go a long way in assuaging the fears of ‘range anxiety’ amidst prospective electric car customers when it came to opting for the new energy mode instead of the internal combustion engine (ICE).
Chandra also pointed out that the rationale behind any subsidy is to let “customers experience a new mode until a critical mass is reached.”
“It is anticipated that by then the cost will come down so much that the subsidy can be removed,” he added, pointing out to the three progressions that have been happening in the industry over time — reduction in the price of cells, which is the single biggest cost of an electric vehicle (EV), the PLI-fired localisation moves for EV manufacturing which will help in further reducing the cost, as well as the growing scale.
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“Once penetration hits 20 per cent, that is when the government should start lowering subsidies of EVs,” Chandra felt.
However electric car penetration, still at below 2 per cent in the country, is facing a bunch of push backs that have other reasons. For example, Japanese majors like Maruti Suzuki, Toyota and Honda have been either completely absent, or going slow, on bringing out EVs, instead pushing for hybrids as a ‘clean’ alternative. States like Uttar Pradesh also recently surprised many by announcing a set of RTO-level incentives for Hybrid vehicles. Rumours abound that Karnataka might follow next. Recently, at least two states took away the road tax rebate that EV four-wheelers used to enjoy earlier.
STARBUCKS has promised to make major changes to its menu and prices in an attempt to win back customers and boost dwindling sales.
In a video message, Starbucks chairman and Chief Executive Officer Brian Niccol said the company will simplify its “overly complex menu”.
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Starbucks CEO Brian Niccol has outlined new plans for the businessCredit: Getty
He added that the coffee chain will fix its “pricing architecture” and “ensure that every customer feels Starbucks is worth it”.
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He also outlined said he wants the chain to return to the welcoming atmosphere of its early locations.
The strategy is a bid to win back customers who are visiting less often, which has caused sales to tumble.
To succeed Niccol said the chain will address staffing issues in its cafes, remove bottlenecks and simplify things for baristas.
It will also improve the mobile order and pay system so it does not overwhelm the cafe experience.
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“We know how to make these improvements, and when we do, we know customers will visit more often,” he said.
“Getting ‘Back to Starbucks’ is our plan, and we’ll share our progress as we go.”
It has not been confirmed when the company plans to implement these changes or how they will be introduced.
Niccol, who previously ran the Mexican food chain Chipotle, was brought in to Starbucks to help turn the company around.
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Its preliminary results showed that global store sales were down 7% between July and September.
The downturn was more prominent in China, where sales fell 14% over the same period.
High prices for drinks and long queues at busy times have been blamed for the tumbling sales.
How much does Starbucks cost?
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Starbucks has a wide range of coffees on offer. Its menu includes:
Caffe Latte – £4.25
White Chocolate Mocha – £5.40
Caffe Mocha – £4.90
Caramel Macchiato – £5.15
Cafe Americano – £3.80
Cappuccino – £4.25
Filter Coffee – £2.55
Caffe Misto – £3.00
Iced Caffe Latte – £4.30
The coffee chain’s seasonal coffees and Frappuccinos can cost more than £6 for the largest size.
In comparison, a latte from Pret costs around £4.05 while Costa Coffee charges around £3.45.
Last week Starbucks announced that it is scaling back its promotional offers through its mobile app to get customers to pay full price for its coffees and teas.
The move is part of a strategy to reposition Starbucks as a premium brand.
It will also reduce pressure on employees, who can get flooded with orders when promotions are on.
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In September the company offered extra loyalty points on Tuesdays and had deals on several drinks purchases on Saturdays.
This moved away from promotions which lasted many months such as “buy one, get one free” and 50% off.
Starbucks is not planning to introduce offers during the festive season and will instead promote its seasonal drinks with advertisements, according to the Wall Street Journal.
Starbucks has previously avoided coffee promotion but it dialled them up earlier this year to lure back customers.
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This strategy has now been put in reverse by Niccol since he took over last month.
Starbucks shares fell 4% on Tuesday and it suspended its financial forecasts for the next year due to the “current state of the business”.
The company’s full results are still scheduled for release on October 30.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
The UK has dropped a requirement for a new men’s football regulator to consider “foreign and trade policy” when approving club takeovers, ahead of the bill being introduced in parliament on Thursday.
The change “ensures” the regulator will be “fully independent” of government and industry, the Department for Culture Media and Sport said on Wednesday, following concerns from European football governing body Uefa and fan groups that it would lead to political “interference”.
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The draft football governance bill had included a clause requiring the body to take into account British foreign and trade policy objectives. But Uefa warned this could have repercussions for England’s participation in Euro 2028, the upcoming international tournament it is due to co-host.
Separately, human rights organisation FairSquare has argued the clause threatened to undermine the independence of the proposed regulator and increase state ownership of English football clubs.
It later emerged that Saudi Arabia’s crown prince Mohammed bin Salman had told then UK prime minister Boris Johnson that relations between the two governments would be damaged unless the Newcastle deal was approved.
The government will introduce the amended football governance bill on Thursday in the House of Lords. The regulator is being set up to tackle “excessive and reckless risk-taking” in the game, as well as clubs “living way beyond their means”.
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Proposals for a new body were championed by former Conservative sports minister Tracey Crouch, who led a government-backed review into the industry. The Labour government has made a series of changes to the bill since it came to power in July.
Despite generating billions in revenue every year, football clubs are known for posting losses and relying on wealthy owners to plug funding gaps.
Fans and communities have “risked losing their cherished clubs” because of financial instability, Nandy said on Wednesday.
“This bill seeks to properly redress the balance, putting fans back at the heart of the game, taking on rogue owners and crucially helping to put clubs up and down the country on a sound financial footing,” she added.
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The regulator will be handed powers over payments that the Premier League makes to clubs that are relegated from the top flight to the Championship in England.
The Premier League and the EFL have clashed over the way the top flight should redistribute revenue to the rest of the football pyramid. The regulator will have “backstop” powers to “mediate a fair financial distribution” if the Premier League and the EFL are unable to reach an agreement.
The Premier League has defended “parachute payments” — worth tens of millions a year to an individual club — for encouraging teams to invest in their squads to ensure they are competitive.
However, the English Football League, which administers the Championship, has said payments skew competition and incentivise other clubs to overspend in order to keep up with those in receipt of the payments. The regulator will be given the remit to include parachute payments in its backstop mechanism.
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However, the payments will be included in its assessment “only if the regulator considers them to be of systemic risk to financial sustainability”. The bill will require protections for relegated clubs.
In response to the update, the Premier League reiterated its concern about the regulatory framework.
The league said “we believe rigid banking-style regulation, and the regulator’s unprecedented and untested powers to intervene in the distribution of the Premier League’s revenues, could have a negative impact on the League’s continued competitiveness, clubs’ investment in world-class talent and, above all, the aspiration that drives our global appeal and growth”.
These mothers should have had ‘Home Responsibilities Protection’ (HRP) on their NI record since 1978 when they were raising children, but in many cases, this is missing which means they aren’t getting paid all the state pension they should.
In an effort to track these women down, HMRC has so far issued more than a quarter of a million letters to people over pension age with no HRP on their record, encouraging them to put in a claim.
They may then be issued backdated payments, as well as a new monthly income if they’re found to have been affected.
However, a Freedom of Information (FOI) response to former pensions minister and current partner at LCP Steve Webb has revealed that tens of thousands still may not be aware they’re missing out.
Mr Webb received a copy of the letter which is sent out to those potentially affected.
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He found that it relies largely on internet-based claiming.
Could you be eligible for Pension Credit?
Recipients are told not to apply until they have used an online check for HRP entitlement and then to put in their application online.
The letter makes no reference to any alternative way of claiming, despite the existence of a simple paper claim form (CF411) which can be used instead.
Research from Age UK suggests that almost 30% of people aged 75 or over never use the internet, which suggests that many of the recipients of these letters may not be able to act upon them.
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Mr Webb is now calling on HMRC to review its communication strategy for older pensioners and to make paper claim forms readily available.
He said: “Whilst I understand the desire of government departments to cut costs, it is completely inappropriate to write letters to hundreds of thousands of pensioners which suggest that the only way to apply is online.
“At the very least, the letter should make it clear that other ways of claiming are available for those who are not online. I am concerned in particular for older pensioners who may not have friends or family to help them.
“Those who have been underpaid have typically missed out on thousands of pounds, and they deserve to have this put right. Unless HMRC addresses this issue it is highly likely that tens of thousands of older pensioners may continue to miss out on money which is rightfully theirs”.
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What are state pension errors?
STEVE Webb, partner at LCP and former Pensions Minister, explains what state pension errors are and how they can occur:
The way state pensions are worked out is so complicated that many thousands of people have been paid the wrong amount for years without even realising it.
The amount of retirement pension you get usually depends on your National Insurance (NI) record.
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One big source of errors has been cases where NI records have been incorrect, particularly for years spent at home with children.
This is a system known as ‘Home Responsibilities Protection’.
Alternatively, particularly for older pensioners, the amount you get can depend on the NI contributions made by your spouse.
Errors have arisen where the Government has failed to adjust the pensions of married women when their husbands retired or failed to increase pensions when someone was bereaved and lost a husband or wife.
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Although the Government has spent years trying to fix these problems, there are still many thousands of people – many of them older women – on the wrong pension.
If you have always thought that your pension seems low, then it is worth contacting the Pensions Service to ask them to check, especially if you spent time at home raising children or if you were widowed and your pension didn’t change when your spouse died.
When the mistake was uncovered the DWP described it as the “second largest” source of errors in state pensions.
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Those affected are people who claimed child benefit, largely women who were stay-at-home mums, before May 2000 as they could have gaps in their NI record which in turn affects the amount of state pension they get.
The amount of state pension someone gets is based on their NI contributions and the number of “qualifying years” they have.
From 1978 to 2010, protection was provided for parents to avoid these gaps by a system known as Home Responsibilities Protection (HRP) credits.
This system was then replaced in 2010 by the one we have now, called National Insurance Credits.
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If someone claimed child benefit before May 2000 and did not provide their NI number on the form, it’s possible that their credits may not have been transferred to their NI account from the child benefit computer.
This may affect their pension entitlement and women who are now in their 60s and 70s are most likely to be affected.
The DWP has already started sending letters to people who might have been entitled to HRP between 1978 and 2010 but have no HRP on their NI record.
It says so far it has written to 370,000 people, of which 257,000 were over State Pension Age.
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It expects to send several hundred thousand letters to those affected over the next 18 months.
Where errors are found, NI records will be corrected and the DWP will then recalculate state pensions and pay arrears.
This could result in increased pension payments as well as a lump sum payment.
An HMRC spokesperson said: “Contrary to what’s been claimed, the letters do include a helpline number to request a paper application form – although for most people it will be much quicker and easier to use our online service.”
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Last year, The Sun spoke to Susan Burton, 66, who almost missed out on £50,000 for her retirement because of this error.
It means that finding out if you have been missing out, could mean a big payday.
What do I need to do now?
The DWP says it has begun the process by writing to those already over pension age.
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For the tens of thousands of those affected who have died, it will be a matter of tracking down the families of the deceased.
Mr Webb told The Sun: “The scale of this problem is such that it is going to take 18 months to try to track down all those who may have missed out.
“But HMRC’s records give them only very limited information about who to contact, so anyone who thinks they were eligible for Home Responsibilities Protection which may be missing from their state pension should check if they were entitled and put in an application.”
What is Home Responsibilities Protection (HRP)?
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BELOW we reveal what Home Responsibilities Protection (HRP) is and why if you received it before 2000 you could be missing out on cash.
From 1978 to 2010, protection was provided for parents to avoid gaps in their “qualifying years” by a system known as Home Responsibilities Protection (HRP) credits.
This system was then replaced in 2010 by the one we have now, called National Insurance Credits.
Most people got HRP automatically if they were getting child benefit in their name for a child under the age of 16 and they had given the child benefit office their National Insurance (NI) number.
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If someone claimed child benefit before May 2000 and did not provide their NI number on the form, it’s possible that their credits may not have been transferred to their NI account from the child benefit computer.
This may affect their pension entitlement and women who are now in their 60s and 70s are most likely to be affected.
If you think you may be entitled, but you have questions, the Pension Service can be reached using the Gov.UK website or by calling 0800 731 0469.
Anyone who has received child benefit since 1978 should check their NI record.
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If the payment is missing, there is a form that can be filled in to get the information added to your record.
It is called a CF411 form and it can be found on the government’s website.
You can also contact the HMRC National Insurance helpline for an application form.
Your state pension will then be automatically recalculated and the arrears will be paid.
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You can still apply for HRP if, for the full tax years (April to April) between 1978 and 2010, if you were either:
Sharing the care of a child under 16 with a partner you lived with and they claimed Child Benefit instead of you
Caring for a sick or disabled person
Any HRP you had before April 6, 2010, have converted to National Insurance credits.
You must have reached state pension age on or after April 6 for these credits to go towards your pension.
YOUR State Pension amount depends on your National Insurance record.
The new State Pension is a regular payment from the government that most people can claim in later life.
You can claim the new State Pension when you reach State Pension age if you have at least 10 years of National Insurance contributions and are:
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a man born on or after 6 April 1951
a woman born on or after 6 April 1953
The full rate of the new State Pension will be £221.20 per week in 2024-25 but you may get more or less, depending on your National Insurance (NI) record.
If you were born before the above dates you’ll get the old State Pension instead.
The full basic State Pension under the old system is currently £169.50per week for people who have all the qualifying years of NI contributions for their date of birth.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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