Thousands of individuals are set to receive backpayments of up to £5,000 from the Department for Work and Pensions (DWP) following an error that led to underpaid state pensions. The issue stems from missing Home Responsibilities Protection (HRP) records between 1978 and 2010, which affected National Insurance (NI) contributions.
HRP was a scheme designed to protect the state pension entitlements of parents and carers, but it was replaced by NI credits in 2010. HM Revenue and Customs (HMRC) is now identifying those who should have had HRP but do not have it on their NI record, resulting in potential underpayments.
DWP Pensions Minister Paul Maynard MP confirmed in a written response to Labour MP Dame Angela Eagle that approximately 187,000 cases may have state pension underpayments, with a total estimated underpayment of £1,043 million. The average underpayment for living cases is £5,000, while for deceased cases it is £3,000.
The correction exercise began with HMRC sending letters in late 2023, and DWP started processing cases in early 2024. The DWP aims to complete all backpayments by the end of 2025. Individuals can check if they are owed money by calling the Pension Service on 0800 731 0469 or visiting the Gov.uk website.
