Thousands of UK state pensioners could be in line for payouts averaging £7,859 due to a long-standing error in the way National Insurance (NI) credits were recorded. The issue, primarily affecting women who took time off work to care for children or relatives, has led to significant underpayments in their state pensions.
The Issue: Missing Home Responsibilities Protection (HRP)
The problem stems from errors related to Home Responsibilities Protection (HRP), a scheme introduced in 1978 to help those who stayed at home to look after children or disabled family members. HRP was designed to reduce the number of years a person needed to qualify for a full state pension. However, many eligible individuals did not have their HRP correctly recorded, particularly those who claimed Child Benefit before 2000.
Before 2000, Child Benefit claim forms often did not include a mandatory National Insurance (NI) number. This resulted in HRP not being applied to their records, ultimately affecting their state pension entitlement.
How Many People Are Affected?
The Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) estimate that approximately 370,000 people, mostly women, may have been underpaid due to this error.
Between January and September 2024 alone, 5,344 pensioners were identified as having been underpaid, with HMRC issuing a total of £42 million in back payments. Those affected have received an average payout of £7,859 each.
Who Is Eligible for a Payout?
![](https://theoctant.org/wp-content/uploads/2025/02/0_hmrc2.webp)
Those most likely to be affected include:
- Individuals (primarily women) who claimed Child Benefit between 1978 and 2010 but did not have HRP correctly recorded.
- People who took time off work to care for children or dependents and were eligible for HRP.
- Pensioners who are now receiving a lower state pension due to missing NI credits.
The government has started contacting over 250,000 individuals who may be affected and is urging them to check their records.
How to Check If You Are Owed Money?
If you believe you may be eligible for a back payment, follow these steps:
- Check your National Insurance record – Visit the UK government website to view your NI contributions and credits: Check your NI record.
- Check your State Pension forecast – Use the government’s online tool to see what you’re entitled to: State Pension forecast.
- Apply for missing HRP credits – If you think you are missing HRP, you can submit a claim through HMRC’s website: Claim missing HRP.
- Submit a CF411 form – If you prefer a paper application, you can complete a CF411 form and return it to HMRC by post.
Wider State Pension Underpayment Issues
This is not the only error affecting pensioners. Other significant underpayments have been uncovered in recent years, including:
- Married women whose husbands retired before March 2008 and who were entitled to an automatic pension increase.
- Widows who should have inherited their late spouse’s pension entitlement but did not receive the correct amount.
- Women over 80 who should have been automatically upgraded to a higher pension but were not.
According to DWP, nearly 120,000 pensioners have been affected by separate errors, with underpayments averaging £11,905 per person.
Government Response and Next Steps
![State Pension Boost: DWP & HMRC Update Could Mean £7,859 Payout for Pensioners](https://theoctant.org/wp-content/uploads/2025/02/0_hmrc3.webp)
The government has acknowledged the error and is working to rectify the situation. HMRC has committed to identifying and contacting affected pensioners, but individuals are encouraged to check their records themselves to ensure they are not missing out on payments.
DWP has set up a dedicated helpline and online services to assist those who may be affected. If you need further assistance, you can contact:
- HMRC National Insurance Helpline: 0300 200 3500
- DWP Pension Service: 0800 731 0469
Conclusion
This significant pension underpayment issue highlights the importance of regularly checking one’s National Insurance and state pension records. If you or someone you know could be affected, it is crucial to take action as soon as possible. With back payments averaging £7,859, thousands of pensioners stand to receive a well-deserved correction to their state pension entitlements.
For official guidance and to check your eligibility, visit the UK government’s website: Gov.uk.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
![Premlata](https://theoctant.org/wp-content/uploads/2025/01/Premlata.png)
Premlata is a seasoned finance writer with a keen eye for unraveling complex global financial systems. From government benefits to energy rebates and recruitment trends, she empowers readers with actionable insights and clarity. When she’s not crafting impactful articles, you can find her sharing her expertise on LinkedIn or connecting via email at [email protected].