- The issue centres on Home Responsibilities Protection (HRP) — a system in place between 6 April 1978 and 5 April 2010 that helped reduce the number of qualifying years for the State Pension if you were out of paid work, e.g. caring responsibilities.
- The error arose because many people (especially parents, often women) who claimed Child Benefit before 2000 did not include their National Insurance (NI) number on the claim forms. Without that, HMRC/National Insurance records did not always capture their entitlement to HRP.
- Because of this, some pensioners have missing HRP credits in their NI records, leading to underpowered State Pension payments / fewer qualifying years than they deserve.
Who Is Affected & How Many
| Group | Description | Estimated Number Affected | Status / Action |
|---|---|---|---|
| Pensioners & those near State Pension Age with missing HRP records | People who claimed Child Benefit pre-2000 and whose NI number wasn’t linked properly | ~ 493,000 have used the online tool to check eligibility; 370,000+ letters sent to older people. | |
| Under-state pension age but eligible | Those close to pension age having similar underpayment potential | More than 5,400 applications from this group processed by September 2024. | |
| Deceased individuals | Families of pensioners who are deceased but were affected by the error | DWP allows underpayments to be claimed after death. |
Key Figures & Financial Impact
- The average payout awarded (for those found eligible) is about £7,859.
- By the end of September 2024: HMRC had processed 37,289 applications from people over State Pension Age and 5,428 from those under it.
- Total arrears paid out so far: approximately £42 million.
What Pensioners Must Do to Claim
- Letters are being sent by HMRC/DWP to those potentially affected. If you receive one, don’t ignore it.
- To claim missing HRP credits, you can apply online or by post (using the relevant form). You’ll need to check whether your NI record lacks HRP and provide evidence of your Child Benefit claim (including dates).
- Even if the person has passed away, underpayments can sometimes be claimed by their estate or next of kin.
Why It Matters
- Without HRP, qualifying years get reduced, meaning the full basic State Pension threshold (which requires 39 years for women, 44 for men in older rules) is harder or impossible to reach.
- Correcting the error means more people will get the full value of their State Pension and will receive lump-sum arrears (£7,000-plus) they were denied. It can make a significant difference for retirees.
The HRP error by DWP and HMRC has left many state pensioners with less than they should have got — but the government acknowledges the fault and is working to correct it.
If you believe you are among those affected, taking action soon could mean reclaiming back payments averaging £7,800+ and enhancing your future pension. Don’t delay: check your records, reply to any letters, and submit a claim if eligible.
FAQs
Who is eligible to claim HRP underpayments?
Anyone who claimed Child Benefit before 2000, had caring responsibilities, and whose National Insurance record is missing HRP credits due to a missing NI number on those Child Benefit claims.
