The £70 refund letter that isn't a scam

September 7, 2026 154news Acacia

The £70 Refund Letter That Isn't a Scam - BBC News

BBC Homepage

Skip to content

Accessibility Help

BBC Verify

Newsbeat

Climate Change

The £70 Refund Letter That Isn't a Scam

Image source: Getty Images

By Kevin Peachey, Cost of Living Correspondent

Published 1 hour ago

You may be among the one million people, mostly women, who will receive letters explaining how you are eligible for top-up pension payments—and it's not a scam.

Those entitled are low earners who have missed out on money because of the way their pension is administered. HM Revenue and Customs (HMRC) will write to people over the next few months, explaining how to receive the payment. Typically, they will be due £70, but this may vary.

Anyone eligible will be contacted automatically, but if you receive a letter, there are checks you can do to ensure its genuineness.

What's the Letter About?

When you pay into a pension, some of the money that would otherwise have been paid in tax goes towards your pension instead. This is known as tax relief.

For complex reasons, some low earners with Net Pay Arrangement pension schemes received less than those on Relief at Source schemes. Employees have no control over the type of scheme used, so the government is topping up missed payments through what's called a low earner's pension payment.

Typically, earnings for this would be close to but not more than £12,570 per year (the starting point for paying income tax). Top-up payments will initially be made for the 2024-25 tax year, with automated payments subsequently kicking in for later years.

How Can I Check the Letter is Real?

Customers don't need to apply; if eligible, they'll be sent information by HMRC—the UK's tax authority—in a letter or through their online personal tax account.

HMRC will not text, email, or call you about it. If you receive such a message, it is a scam.

Other ways to check contact is genuine include:

Making sure HMRC has your latest address
Searching Gov.uk for "check if a letter you've received from HMRC is genuine" and looking for "Low Earner's Pension Payment"
HMRC also has advice on spotting a scam

Customers will be asked to provide bank details through their personal tax account. Those digitally excluded can phone HMRC to accept their payment instead.

"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," said a HMRC spokesman. "Customers can check a letter is genuine on Gov.uk and should only respond via official HMRC channels."

Is Everyone Expected to Get Paid?

Sir Steve Webb, partner at pensions consultancy LCP and a former pensions minister, was shocked by how few people the government expected to receive the payment.

The government estimates the cost of the project to be much lower than if everyone eligible took up the payment.

"The process of getting these payments to the right people is going to be incredibly painful and there is a real risk of huge non-take-up," he said. "It is vital that communications are effective to make sure people get the money they are entitled to."