Personal finance expert Martin Lewis has drawn attention to a long-running State Pension issue that could leave thousands of people, mainly women, entitled to back payments. The issue relates to Home Responsibilities Protection, a scheme designed to safeguard National Insurance records for parents and carers between 1978 and 2010.
According to official estimates, pension underpayments linked to missing HRP records could total between £300 million and £1.5 billion. Some individuals have already received substantial repayments, with one case reportedly exceeding £31,000. Accounting firm Robson Laidler suggests that average back payments may be around £5,000, though individual amounts vary.
Background
Home Responsibilities Protection was introduced to protect the State Pension rights of parents and carers who took time away from paid employment. During years spent caring for children or disabled individuals, people might not have paid enough National Insurance contributions to build a full State Pension.
HRP reduced the number of qualifying years required for a full pension. From April 6, 2010, HRP was replaced by National Insurance credits, which serve a similar function.
The issue arises because, in some cases, HRP was not properly recorded on individuals’ National Insurance records.
Impact
If HRP years are missing from a National Insurance record, the State Pension calculation may be lower than it should be. This does not automatically mean a pension is incorrect, but it increases the risk of underpayment, particularly for those who took extended time off to raise children.
The groups most likely to be affected include:
| Group | Risk Level |
|---|---|
| Parents claiming Child Benefit before May 2000 | Higher |
| Women now in their 60s and 70s | Higher |
| Carers between 1978 and 2010 | Moderate to High |
| Claims made after May 2000 with NI number provided | Lower |
Before May 2000, it was not mandatory to include a National Insurance number when claiming Child Benefit. As a result, some HRP years may not have been automatically linked to the correct record.
Eligibility
You may be able to apply for missing HRP if, for full tax years between April 6, 1978 and April 5, 2010, you were:
- Caring for a child under 16
- Sharing care with a partner who claimed Child Benefit
- Caring for someone who was sick or disabled
Additional eligibility may apply if, between 2003 and 2010, you were:
- A foster carer
- A kinship carer in Scotland
If you reached State Pension age on or after April 6, 2010, any valid HRP years should have been converted automatically into National Insurance credits, up to a maximum of 22 qualifying years.
Payments
The amount owed depends on how many qualifying years were missing and how that affected the State Pension calculation.
Reported figures suggest:
| Scenario | Potential Repayment |
|---|---|
| Small gap in NI record | Several hundred pounds |
| Multiple missing years | Around £5,000 average |
| Long-term underpayment | £10,000 to £30,000+ |
One case highlighted involved 15 years of back payments totaling more than £31,000. However, outcomes vary based on individual records and pension history.
The Department for Work and Pensions continues to review cases, while HM Revenue and Customs is contacting individuals it believes may have missing HRP records.
Action
Individuals do not need to wait for a letter to check their status. It is possible to review your National Insurance record online through the official government website.
Steps to take:
- Check your State Pension forecast on gov.uk.
- Review your National Insurance record for gaps between 1978 and 2010.
- Identify whether those gaps relate to years spent caring for children or a disabled person.
- If you believe HRP is missing, complete form CF411 to apply.
There is no time limit for applying if HRP was not awarded when it should have been.
HMRC has confirmed that it will send letters where it identifies potential missing HRP. The letter will outline how to check eligibility and submit a claim.
Records
The government has stated that the State Pension remains the foundation of retirement support in the United Kingdom. Officials are encouraging individuals to verify their National Insurance records to ensure they receive the correct entitlement.
The review process is ongoing, and repayments are still being issued. Tens of thousands of people may be eligible for corrections.
For those who had children or carried out caring responsibilities between 1978 and 2010, reviewing National Insurance records could clarify whether HRP was correctly applied. While not everyone will be affected, checking records can help ensure that State Pension entitlements accurately reflect time spent outside the workforce for caring responsibilities.
FAQs
What is Home Responsibilities Protection?
A scheme protecting State Pension rights for carers.
Who may be affected?
Parents or carers between 1978 and 2010.
How much could be owed?
Around £5,000 on average, varies by case.
Is there a deadline to apply?
No, there is no time limit.
