Thousands of UK state pensioners could be owed an average of £8,377 each due to a long-standing error in their National Insurance (NI) records, the Department for Work and Pensions (DWP) has confirmed. Despite being contacted by HMRC, many have yet to come forward to claim the money.
The DWP is now urging eligible individuals to check if they qualify for these back payments, which could significantly increase their weekly state pension and result in a lump sum payout.
Mistake
The issue stems from Home Responsibilities Protection (HRP), a credit designed to protect state pension entitlement for those who took time away from work to care for children or disabled relatives. HRP should have been automatically added to NI records between 1978 and 2010, but in many cases, it was not.
This missing credit means that thousands of people – primarily women and unpaid carers – received lower pension payments than they were entitled to.
Discovery
Once the problem came to light, HMRC and the DWP began investigating and launched a correction program. In 2023 and 2024, letters were sent to over 370,000 people believed to be affected, advising them to apply for a review of their records.
Despite this effort, only 67,000+ individuals submitted applications, and just 12,379 have received back payments so far. The average payment was £8,377, and the total payout reached £104 million.
| Category | Number |
|---|---|
| Letters Sent | 370,018 |
| Applications Received | 67,000+ |
| Cases Sent to DWP | 21,878 |
| Arrears Paid | 12,379 |
| Total Payout Distributed | £104 million |
| Average Payout per Person | £8,377 |
Skepticism
Peter Schofield, the DWP Permanent Secretary, told MPs that many people simply did not respond to the letters. He explained that public distrust may have played a role, as some individuals suspected the letters were scams. Despite HMRC publishing reassurance on its website, uptake remained low.
Others declined to apply due to concerns over benefit entitlements. Some worried that receiving additional state pension could affect their eligibility for Pension Credit or related support. In other cases, individuals felt that the matter was too historic to pursue.
Eligibility
You may be affected by the HRP issue if you:
- Received Child Benefit for a child under 16 between April 6, 1978 and April 5, 2010
- Claimed Income Support while caring for someone who was ill or disabled
However, if you applied for HRP after 2000, your NI number would have been required on the application form. This means your NI record is likely accurate.
The majority of affected people are women, particularly those who paused employment for caregiving responsibilities during the 1980s and 1990s.
Action
While the bulk outreach campaign has ended, the system remains open, and DWP is still accepting new claims. If you think HRP is missing from your record, you can apply online through the UK Government’s official website.
It is important to act promptly. Missing HRP years could not only mean a significant back payment, but also an increase in your weekly pension moving forward.
Motivation
Many of those affected may be unaware of the issue or uncertain about the claims process. However, the DWP has made clear that it is still ready to process claims, and the necessary infrastructure is in place.
If you or someone you know may have been eligible for HRP between 1978 and 2010, it is advisable to review your NI record. Correcting any omissions could lead to a substantial financial improvement in retirement.
FAQs
Who is affected by missing HRP?
People who claimed Child Benefit or cared for others between 1978-2010.
How much is the average back payment?
Around £8,377 per claimant on average.
Why haven’t more people claimed?
Many didn’t trust the letter or feared losing other benefits.
Is it too late to apply for HRP?
No, the system is still open for new applications.
