People are being urged to check their State Pension forecast and National Insurance record after a newly identified HM Revenue and Customs (HMRC) error highlighted another way some could miss out on money. Consumer website MoneySavingExpert (MSE.com) said the issue, which could affect up to 800,000 people who became self-employed between 2015 and 2024, is the latest reminder of how mistakes and missing National Insurance credits can affect State Pension entitlement.
Martin Lewis Warns of System Complexity
Writing in this week's MoneySavingExpert newsletter, founder Martin Lewis said: "The whole State Pension system is incredibly complex, which means even those in charge of it can make huge errors, miss payments and more." He added: "Some mistakes are automatically corrected; with others, it's don't ask, don't get."
MoneySavingExpert has highlighted seven key checks that could help people identify missing National Insurance credits, fill gaps in their record, or uncover historic underpayments. The full guide can be found on MSE.com; below is a brief overview.
1. Check Your State Pension Forecast
MoneySavingExpert said anyone below State Pension age should first check their State Pension forecast on GOV.UK to see how much they are on course to receive. The online service shows whether you are on track for the full State Pension based on your National Insurance record and can highlight whether you need to investigate any gaps. Most people need at least 10 qualifying National Insurance years to receive any State Pension and around 35 years to qualify for the full new State Pension, although the exact amount depends on individual circumstances.
2. Check Your National Insurance Record
The next step is to check your National Insurance record for missing years or gaps. MoneySavingExpert said people who are not on track to receive the full State Pension may, in some circumstances, be able to fill gaps by paying voluntary National Insurance contributions. However, this is not right for everyone and should be checked carefully before making a payment.
3. Check Whether the New HMRC Error Affects You
MoneySavingExpert said up to 800,000 people who became self-employed between 2015 and 2024 could have incorrect National Insurance records. The issue affects some people who registered for Self Assessment but did not also complete HMRC's CWF1 registration, meaning the correct Class 2 National Insurance contributions may not have been recorded. Anyone who became self-employed during that period should check their National Insurance record to make sure it is accurate.
4. Parents, Grandparents and Carers: Check for Free NI Credits
MoneySavingExpert said many people could increase their State Pension entitlement without paying voluntary National Insurance contributions. Parents who claimed Child Benefit in the wrong partner's name, grandparents who looked after children while parents worked, and unpaid carers providing at least 20 hours of care each week may all qualify for National Insurance credits.
5. Check for Historic State Pension Underpayments
Some married, divorced, and widowed women who reached State Pension age before April 2016 may have been underpaid because their pension was not correctly increased using their husband's, former husband's, or late husband's National Insurance record. MoneySavingExpert said anyone who thinks they may have been affected should check whether they are receiving the correct amount.
6. Check Your Home Responsibilities Protection Record
People who took time away from work between 1978 and 2010 to care for children or someone with a long-term disability should also check whether Home Responsibilities Protection (HRP) was correctly applied to their National Insurance record. MoneySavingExpert said errors have resulted in some people receiving substantial back payments after their records were corrected. One reader told MSE.com they were awarded £16,000 after checking their entitlement.
7. Check Whether You Can Claim Childcare Credits
Grandparents and other family members below State Pension age who looked after children under 12 while parents were working may be entitled to Specified Adult Childcare Credits. MoneySavingExpert highlighted the case of one reader who said successfully claiming missing childcare credits increased their State Pension by £50 a week and resulted in a £3,300 back payment.
Another reader told MoneySavingExpert they were awarded £16,000 after checking their HRP record, highlighting how reviewing your State Pension entitlement could uncover missing payments or National Insurance credits.
