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Martin Lewis raises alarm over State Pension payouts

Parents of children born between 1978 and 2010 may be owed significant sums due to HMRC errors.

July 28, 2025 at 07:25 AM

Martin Lewis: Anyone with children born 1978-2010 may be owed thousands by HMRC

The Money Saving Expert urges parents to check for owed sums from HMRC regarding State Pension errors.

Martin Lewis warns parents about potential State Pension payouts

Martin Lewis has raised an important issue for parents of children born between 1978 and 2010, suggesting they might be owed a significant amount by HMRC due to an error linked to the State Pension. According to Lewis, many individuals who took career breaks during those years to care for children or disabled individuals could be eligible for refunds because of unrecognized gaps in their National Insurance contributions. This particularly impacts those who should have benefited from 'Home Responsibilities Protection', which helps prevent underpayments in pensions. Recent reports reveal that the government may owe over £800 million in underpayments, and this situation is prompting action from individuals to proactively check their pension entitlements. Figures from a recent exercise indicate thousands of underpayments, with one remarkable case involving £31,674 awarded to a single claimant, illustrating the scale of the potential payouts.

Key Takeaways

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Parents with children from 1978-2010 may claim significant refunds from HMRC.

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Many individuals face State Pension underpayments due to administrative errors.

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Government has admitted to owing over £800 million in underpayments.

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One claimant received £31,674 for underpayment, highlighting the issue's scope.

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Urgent reforms are necessary to protect against future pension miscalculations.

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Women are disproportionately affected by these pension errors, often leading to financial hardships.

"State Pension error! Did you take time off work to look after children or someone long term disabled? You could be owed £10,000s"

Martin Lewis highlights the potential for significant refunds due to past pension errors.

"This is one of the biggest benefit scandals of modern times"

Rachel Vahey emphasizes the severity of the pension miscalculations affecting thousands.

The revelation of potential underpayments raises significant concerns about how systemic errors can impact the financial security of vulnerable groups, particularly women. Lewis' activism highlights a growing frustration with how the government handles pension calculations, especially given the long history of mismanagement. Experts like former pensions minister Sir Steve Webb emphasize the urgency of addressing these underpayments, arguing that they constitute one of the most severe missteps in public policy concerning pensions. The ongoing checks by the DWP suggest a slow but necessary shift towards correcting these injustices, though the timeline for resolution extends as far as 2027, leaving many in precarious financial situations for years to come. This situation calls for increased transparency and accountability within government agencies tasked with ensuring citizens receive their due entitlements.

Highlights

Did you take time off work to care for children? You might be owed thousands.
One woman received back pay of £31,674 for pension underpayment.
The DWP faces a multi-million pound scandal with delayed corrections.
It's critical that all affected receive owed funds swiftly.

Concern over pension underpayment issues

The HMRC's potential underpayment errors may lead to financial strain for numerous individuals, particularly affecting women's pensions due to a history of neglect in calculations.

This situation underscores the need for prompt action to ensure that all affected individuals receive their rightful payments without delay.

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state pension hmrc pensions national insurance financial security finance politics social welfare

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