HMRC launches £70 top-up letters to one million low-earner pensioners

HM Revenue and Customs confirmed that it will dispatch correspondence to roughly one million individuals who earned close to the £12,570 personal-allowance threshold and contributed to workplace pensions through net-pay arrangements. These workers missed out on the usual 20% tax-relief top-up, so the department is offering a one-off payment, typically £70, to make up the shortfall. About 75% of the expected recipients are women, reflecting the gender split in low-earner pension participation.

Former pensions minister Steve Webb cautioned that the rollout could be painful and risk low take-up if people mistake the letters for scams. Money-saving expert Thomas Drury urged anyone who fits the earnings profile to watch for the mail and check their Personal Tax Account, as no application is required.