HM Revenue and Customs (HMRC) will send letters to approximately one million individuals, primarily women, informing them of their eligibility for top-up pension payments. This initiative targets low earners who have not received the full benefits due to the administration of their pension schemes. Eligible individuals typically earn just under £12,570 annually, which is the threshold for income tax. The top-up payment is expected to be around £70, though it may vary based on individual circumstances.
The letters will be dispatched over the coming months, and recipients do not need to apply for the payments. Instead, they will receive information directly from HMRC, either via letter or through their online personal tax accounts. HMRC has emphasized that it will not contact individuals through text, email, or phone calls regarding this matter, and any such communication should be considered a scam.
To verify the authenticity of the letters, recipients can visit Gov.uk and search for "check if a letter you've received from HMRC is genuine". Additionally, HMRC has provided guidance on identifying scams. Individuals who are digitally excluded will have the option to contact HMRC by phone to accept their payments.
A spokesman for HMRC stated, "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." Sir Steve Webb, a partner at pensions consultancy LCP and former pensions minister, expressed concern over the government's expectations regarding the uptake of these payments, highlighting the potential for significant non-take-up. He stressed the importance of effective communication to ensure eligible individuals receive the funds they are entitled to. HMRC plans to conduct an awareness campaign through social media and other channels.