Overview
- HMRC has apologised after media reports revealed it used 52 weeks at the uprated state pension rate instead of the correct 51‑plus‑1 method, which overstated taxable pension income for many retirees.
- Sunday's reports said up to 8.7 million pensioners may have been affected and that the error could have led to about £43.5 million being collected last year, with an average overcharge of roughly £5 per person.
- The mistake arose when HMRC relied on Department for Work and Pensions data that assumed 52 weeks at the higher rate, causing a £9.05 annual overstatement of pension income for 2025/26 and small extra tax per taxpayer.
- HMRC says it is investigating, has apologised and aims to implement a technical fix later this summer, but it has not announced an automatic mass refund scheme so pensioners must contact HMRC or amend returns to reclaim money.
- Critics including opposition politicians and pension experts say the delay in correcting the problem raises concerns about HMRC's use of automated processes, legacy IT and customer service, and they are calling for clearer safeguards and faster repayments.