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One Million Eligible for £70 Pension Refund, Not a Scam, HMRC Says
Confirmed
In Short: HMRC is contacting one million people who could receive a £70 pension top-up, emphasizing it's not a scam.
HMRC is reaching out to one million people who could receive a £70 pension top-up, a move that's not a scam, according to the UK's tax authority. The vast majority of those eligible are of working age, rather than pensioners, and will be contacted automatically by HMRC over the next few months.
The government has decided to make up the difference for low earners who have missed out on pension tax relief due to the type of pension scheme they used. This is because some low earners whose employer used a Net Pay Arrangement pension scheme received less than those whose pension was administered through a Relief at Source scheme.
HMRC is providing clear information to ensure people are not cautious about unexpected contact, with a spokesman stating, 'We know some people may be cautious about unexpected contact, which is why we provide clear information about what to expect and how to verify the contact is genuine.
Experts are concerned that many people might ignore the letters, assuming they are a scam, which could mean millions of pounds go unclaimed. HMRC has already started sending the letters and will continue distributing them in batches until early 2027, with some people not hearing anything for several months.
What's confirmed
What's still developing
- Sir Steve Webb, partner at pensions consultancy LCP and a former pensions minister, said he was shocked at how few people the government expected to actually receive the payment.
- When you pay into a pension, the government allows some of the money that would otherwise have been paid in tax to go towards your pension instead.
- If eligible, you'll be sent information by HMRC - the UK's tax authority - in a letter or through your online personal tax account, external.
- The letters from HMRC are going out to people who saved into workplace pensions but are on low incomes Nearly one million people are set to receive an unexpected letter from HMRC telling them they could be owed money.
- A letter from HMRC could soon land on the doormat of around 1.2 million people, and it could be worth checking carefully if you are one of them.
- HMRC estimates that women make up roughly three quarters of everyone eligible, meaning around 990,000 women could potentially receive the payment.