HMRC Sends 1 Million Letters for £70 Pension Top-Ups to Low Earners
Updated
Updated · BBC.com · Sep 6
HMRC Sends 1 Million Letters for £70 Pension Top-Ups to Low Earners
1 articles · Updated · BBC.com · Sep 6
Summary
About 1 million people—mostly women—will be contacted by HMRC over the next few months about pension top-up payments, typically worth £70, for the 2024-25 tax year.
The payments are meant to compensate low earners, generally those earning near but below £12,570, who lost out on pension tax relief because their employer used a Net Pay Arrangement scheme.
HMRC said eligible people do not need to apply and will be contacted only by letter or through their online personal tax account; texts, emails or calls about the payment should be treated as scams.
Recipients will be asked to provide bank details through official HMRC channels, while digitally excluded customers can accept payment by phone.
Sir Steve Webb of LCP warned take-up could be low despite broad eligibility, saying the process may be painful unless HMRC's planned awareness campaign reaches those entitled.