Five common DWP state pension mistakes that can stop or reduce payments

Five common Department for Work and Pensions (DWP) state pension mistakes that can stop or reduce payments have been revealed. The most well known pension is the state pension, which is a payment made by the Department for Work and Pensions ( DWP ).

The state pension is paid for through National Insurance contributions, which come from the wages of people working today. As it stands, each working generation pays for the older generation above them so those who are working and paying taxes now, fund the current state pension payments.

Currently, you can start claiming the state pension once you turn 66 years old - although this is rising to 68. To be eligible to claim, most people need to have at least 35 years of National Insurance contributions, some will need more, and ten years to get anything at all.

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How much state pension you get also depends on when you were born. If you’re a man born on or after April 6, 1951, or a woman born on or after April 6, 1953, you’ll claim the new state pension. The full new state pension is currently worth £221.20 a week and is worth £11,541.90 a year. The basic state pension pays £169.50 a week and is worth £8,844.27 a year.

Not claiming child benefit

HMRC Child Benefit also gives you National Insurance Credits. That means that a stay-at-home parent can still build up their state pension entitlement, and could get up to 12 years’ worth of credits. By claiming Child Benefit, you can get an allowance paid to you for each child - you’ll usually get it every 4 weeks, National Insurance credits which count towards your State Pension and a National Insurance number for your child without them having to apply for one - they’ll usually get the number shortly before they turn 16 years old

If you choose not to get Child Benefit payments, you should still make a claim to get the other advantages. You’ll get National Insurance credits automatically if you claim Child Benefit and your child is under 12. These credits count towards your State Pension, so you do not have gaps in your National Insurance record if either:

• you’re not working
• you do not earn enough to pay National Insurance contributions

If you do not need the National Insurance credits, your family may be eligible to get the support instead. Either your husband, wife or partner can apply to transfer the credits or a different family member who provides care for your child can apply for Specified Adult Childcare credits.

Not claiming other benefits

There are lots of other benefits that automatically give you NI credits including Jobseeker’s Allowance, Employment and Support Allowance, Unemployability Supplement, Maternity allowance, Carer’s Allowance, Income Support and Carer Support Payment (Scotland only).

Working Tax Credit and Universal Credit complete the list. Those who qualify for National Insurance credits are not making National Insurance contributions because they are not in paid employment. This can be because they are taking time out to look after children, or because they are unemployed or ill.

You can also receive National Insurance credits when you are on an approved training course or doing jury service.

Failing to claim NI credits on some benefits

There are some benefits or situations where you are entitled to NI credits if you need them, but these aren’t given automatically, and you need to apply. National Insurance credits are a way of maintaining your National Insurance record when you are not making National Insurance contributions.

They help to build up 'qualifying years', which count towards your entitlement for basic state pension, and other benefits.

Not filling gaps in your record

If you do not pay National Insurance you may have gaps in your National Insurance record. This could be because you were employed but had low earnings. unemployed and were not claiming benefits or self-employed but did not pay contributions because of small profits or living or working outside the UK.

You cannot pay voluntary contributions if you do not have gaps in your National Insurance record - unless you’re getting Class 3 credits and are eligible to pay Class 2 contributions or are a married woman or widow paying reduced rate National Insurance or have passed the deadline for paying contributions for the period that has gaps.

State pension errors

A series of government errors means groups are being paid less than their allowance. It includes people who took time off work because of caring responsibilities between 1978 and 2010 and women who reached state pension age before 2016.

Women who divorced their partners after state pension age, widows whose husbands died after March 17, 2008, anyone aged over-60, heirs and widows of people in the categories above and anyone who is getting less than £93 a week in state pension could be impacted.