Universal Credit and Pension Contributions

Tyski

I decided to check my state pension today and was kind of shocked to see I only had 3 qualifying years, I was on Universal Credit for about 4 years but my state pension just says Year is not full for any of those years. So does UC not count towards your state pension?

calcotti

You receive Class 3 NI credits while receiving Universal Credit. There are delays applying NI credits to the tax years so it is possible that DWP have not informed HMRC about your UC. Worth contacting HMRC to ask them if they have had any information from DWP. If not then try raising it with your MP.
Obviously if you were only on UC for part of the year then you will not get a full year as result.

Chimmy73

Hi  Tyski

I am in a similar position! (I am missing whole years which should not be the case.)  I've been going back and forth between HMRC & DWP - the HMRC want UC to send them directly a copy of all the benefit payments made to me, so they can update my records, but UC are saying I can print & send off these details myself (I don't have a printer.)  Anyway HMRC won't accept this due to potential fraud (Also why should I be out of pocket for their mistake.)  I have made a formal complaint to the DWP. As @calcotti has auggested, I will contact my MP if the matter isn't resolved.
 
A word of advice, if you do find you have missing years/part years, & you want to pay them; make sure you do this BEFORE 5th April 2023 (the last day of this tax year,) or the amount will increase.

calcotti

https://www.rightsnet.org.uk/forums/viewthread/17920/
https://www.whatdotheyknow.com/request/uc_claimants_not_being_automatic
See the linked files.
It's a mess.
It's why I think it so important that people involve their MPs.

NedS

Chimmy73 said:

I am in a similar position! (I am missing whole years which should not be the case.)  I've been going back and forth between HMRC & DWP - the HMRC want UC to send them directly a copy of all the benefit payments made to me, so they can update my records, but UC are saying I can print & send off these details myself (I don't have a printer.)  Anyway HMRC won't accept this due to potential fraud (Also why should I be out of pocket for their mistake.)  I have made a formal complaint to the DWP. As @calcotti has auggested, I will contact my MP if the matter isn't resolved.
 

Yes, unfortunately that is not going to work. There is a process - DWP must inform HMRC that the person was in receipt of relevant benefits during the year, and HMRC update the records. Unfortunately there is a known issue which means that (for some people?) the information is not being passed from DWP to HMRC.

As @calcotti highlights above, this is DWPs fault so no point talking to HMRC. DWP are aware of the issue (but maybe not how many people are potentially affected?) and are supposedly working to address the issue, but it would appear progress is slow and getting any detailed information is like pulling hens teeth.

Either contact your MP or wait and see if it gets fixed naturally. The closer you are to state retirement age, the more iurgency in getting it fixed for you.

calcotti

NedS said: Either contact your MP or wait and see if it gets fixed naturally. The closer you are to state retirement age, the more iurgency in getting it fixed for you.

The problem is whether people possibly make voluntary payments to complete tax yers based one records when they didn't need to. It's completely unacceptably that the system is not being updated in due timely manner.

Chimmy73

@NedS @calcotti

To be fair, the HMRC have actually been quite helpful, and are providing me with a detailed breakdown of their records,  which will give me the exact dates NI Contributions are "missing." I agree the DWP are useless, and I don't hold much faith in my complaint being dealt with correctly. It's clear this is a major headache for HMRC, but I will fight this.  I'm so grateful I saw the post on MSE regarding making extra NI payments, as it made me think I should check my records were correct  - Thanks guys!

rangout

I tried my MP after chasing up HMRC and DWP a few times

Over three months ago, the DWP response was they already contacted me about it, and they are unable to resolve the issue.

They made a later comment in my UC journal, acknowledging there was an issue, and "whilst solution was being progressed no action was needed by the majority of UC claimants". In other words, don't bother us

They still haven't fixed the problem

NedS

rangout said:

They made a later comment in my UC journal, acknowledging there was an issue, and "whilst solution was being progressed no action was needed by the majority of UC claimants". In other words, don't bother us

Yes, their approach seems to be that they will hopefully have it fixed by the time you retire so you do not need to worry about it now. I have little confidence this will not potentially escalate into a massive underpayment of state pensions for decades to come.

rangout

NedS said:

rangout said:

They made a later comment in my UC journal, acknowledging there was an issue, and "whilst solution was being progressed no action was needed by the majority of UC claimants". In other words, don't bother us

Yes, their approach seems to be that they will hopefully have it fixed by the time you retire so you do not need to worry about it now. I have little confidence this will not potentially escalate into a massive underpayment of state pensions for decades to come.

Or a class action from hundreds of pensioners

Chimmy73

@NedS @calcotti @rangout

I can't believe it; UC have accepted their mistake and reinstated my NI contributions!!  I made my formal complaint online via the DWP website (I'm a newbie so I can't share the link -  I searched  "UC complaints")

I called them on Friday to query why I had not received an acknowledgement, and was told it takes 15 working day!  I made another complaint about that 😂😂 I guess my call escalated my complaint 😁

I've checked with HMRC, and my records have been updated, and a letter confirming this will be sent to me.

Complaints can be made in relation to  all benefits, not just UC.  I would  advise complaining online, and not by calling.

I really hope others can be encouraged to complain, and not accept being fobbed off 💪🏾