More than 370,000 older individuals – predominantly women – have been issued letters by HM Revenue and Customs (HMRC) advising them to check their State Pension entitlement. The Department for Work and Pensions (DWP) has confirmed that historical errors in Home Responsibilities Protection (HRP) records have led to underpayments, with an average arrears payment of £7,859.
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What Led to State Pension Underpayments?
In 2022, the DWP identified that some National Insurance (NI) records were missing periods of Home Responsibilities Protection (HRP), which was meant to protect the State Pension entitlements of parents and carers. This omission led to lower-than-expected pension payments for some individuals.
The issue affects both:
- People over State Pension age who have been receiving underpaid pensions for years.
- Individuals under State Pension age whose future payments may be impacted.
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Who Is Affected?
The error mostly affects women in their 60s and 70s, as HRP was originally designed to help parents and carers – roles traditionally taken on by women. If you:
- Claimed Child Benefit for a child under 16 between 1978 and 2010
- Were a carer for someone who was sick or disabled
- Were a foster carer or a kinship carer in Scotland
Then you may be eligible for a State Pension correction.
How Much Are the Back Payments?
The DWP estimates that between £300 million and £1.5 billion in State Pension underpayments exist due to HRP errors. Currently:
- The average back payment is £7,859.
- Tens of thousands of people may be entitled to £5,000 or more.
Who Gets Priority?
DWP has prioritized contacting individuals who are closest to State Pension age first. However, anyone who believes they may have been affected can check their eligibility online.
How to Check If You Are Owed Money
The DWP and HMRC have launched a Legal Entitlements and Administrative Practice (LEAP) corrections exercise, aiming to:
- Identify affected individuals
- Correct their NI records
- Issue any owed payments
More than 493,000 people have already used the online HRP self-identification tool at GOV.UK.
How to Apply for Back Payments
If you believe you are affected, you should:
- Visit the HRP self-identification tool on GOV.UK.
- Check your National Insurance record for missing HRP periods.
- Submit an application if necessary.
- Wait for a letter from HMRC or DWP, as they are proactively contacting those affected.
When Will Payments Be Made?
The DWP aims to complete payments by the end of 2024 for those already identified. So far:
- 37,289 applications have been processed for individuals above State Pension age.
- 5,428 applications have been processed for individuals below State Pension age.
- £42 million in arrears payments has been issued so far.
Understanding Home Responsibilities Protection (HRP)
HRP was introduced in 1978 to help protect the State Pension entitlements of parents and carers. It was replaced by National Insurance credits in 2010.
Who Qualified for HRP?
Before 2010, HRP was automatically granted if you:
- Claimed Child Benefit and provided your National Insurance number
- Received Income Support while caring for a sick or disabled person
However, if you were a married woman or widow who opted to pay reduced-rate NI contributions, you may not have received HRP.
Can You Transfer HRP from a Partner?
If your partner claimed Child Benefit instead of you, HRP may be transferred to your NI record if:
- You both cared for a child under 16
- Your partner does not need the HRP credits
- You reached State Pension age after 6 April 2008
How HMRC and DWP Are Addressing the Issue
- NI records from 1978-2010 are being reviewed.
- Corrections are automatic for those identified.
- Wider awareness campaigns are ongoing to ensure people check their records.
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Final Steps: What You Should Do Next
If you think you may have been underpaid, take the following steps:
- Check your National Insurance record online.
- Use the HRP self-identification tool on GOV.UK.
- Await a letter from DWP or HMRC if you are eligible.
- Submit a claim if necessary to correct your pension.
With hundreds of millions of pounds owed, thousands of individuals stand to benefit from correcting their State Pension entitlement. Don’t miss out on a potential £8,000 back payment—check your eligibility today.
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