HMRC to pay £70 pension top-up to 1 million low earners
The UK government will distribute pension refunds worth typically £70 to approximately one million people, most of whom are women. This payment addresses a discrepancy in tax relief schemes that prevented eligible low-income workers from receiving their full contribution.
HM Revenue and Customs (HMRC) is writing to about one million people over the coming months regarding pension payments. The recipients are primarily women with annual incomes near, but not exceeding, £12,570. These individuals earned less than those using a Relief at Source scheme due to a Net Pay Arrangement system employed by their employers. Employees cannot control which administrative arrangement is used. HMRC will clarify eligibility and payment methods through the correspondence. The top-up payments represent tax relief that was previously diverted rather than applied to pension funds. Most eligible recipients will be entitled to £70, though amounts may vary based on specific circumstances. Payments concern the 2024 tax year. While most eligible individuals will receive notification automatically, the letters advise recipients on verification steps to confirm authenticity and prevent fraud.
