MILLIONS of Universal Credit claimants could be missing out on hundreds of pounds due to a “mystery” glitch. State pension records for people who claim Universal Credit are said to be “riddled” with errors, This is Money reports.
1Millions of Universal Credit claimants could be missing out on hundreds of pounds due to a ‘mystery’ glitchCredit: Alamy
The system which is supposed to update National Insurance (NI) credits for people on Universal Credit automatically is reportedly not working.
If you’re on benefits, and as long as you’re satisfying all the requirements, you get the credit towards your state pension.
So it’s as if you have been paying your National Insurance.
The gov.uk website says that Universal Credit claimants will “automatically” have the credit added to their records, but this appears to not be taking place in several cases.
Claimants are instead having their NI records corrected manually when they reach four months of state pension age.
Although, some people’s records seemingly aren’t being corrected and they have therefore been underpaid.
While others could have wasted their cash by buying NI top-ups when they don’t actually need to.
It takes 35 years of NI contributions (NICs) to get the full amount of state pension, but you can pay for the gaps to be filled.
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One woman received £667 after This is Money took her case to HMRC and the Department of Work and Pensions (DWP) after she attempted to chase missing credits herself.
Since 2018, millions of Brits have claimed Universal Credit, with 4.8million having claimed the benefit as of August 2022.
If you’re missing credits it can mean that you lose money in your pension when you retire.
A DWP spokesperson told This is Money: “All of the cases raised have now been resolved and we are sorry for any inconvenience caused.
“We are working with HMRC on an improved process to add historic and future Universal Credit National Insurance credits to National Insurance records.”
The Sun contacted the DWP for comment.