The Department for Work and Pensions (DWP) is contacting more than 300,000 people who may be owed an increase to their state pension entitlement. The letters relate to missing Home Responsibilities Protection (HRP) on National Insurance (NI) records, which has led to thousands of people being underpaid their state pension.
Those affected could receive a back payment for the difference they should have been paid, as well as an ongoing uplift to their weekly state pension. The amount depends on how many years of HRP are missing and how this has affected the individual's entitlement.
Who Is Affected by Missing HRP?
HRP was a scheme that covered a person's NI contributions for periods when they were out of work caring for someone, such as a child. It ran from April 6, 1978 to April 5, 2010, when it was replaced by National Insurance credits.
From May 2000 onwards, claimants had to include their National Insurance number when claiming the support. Anyone who put in a claim after that date will not be impacted by the issue.
What Could You Receive?
Mark Pemberthy, benefits consulting lead at consultancy firm Gallagher, said: "The amount someone could receive will depend on how many years of Home Responsibilities Protection are missing from their National Insurance record and how this has affected their state pension entitlement. While the exact amount will vary, even a small weekly uplift can make a meaningful difference to someone’s retirement income over time."
Mr Pemberthy added: "For most people, the state pension is a vital source of retirement income, so even a small underpayment can make a real difference over time. The challenge is that gaps like these aren't always obvious, particularly for people who have been receiving their state pension since before April 2016, when everyone received a different amount based on their personal earnings history."
Second Round of Letters
The DWP and HMRC are currently issuing a second round of letters to those who may have been impacted. They wrote to 340,000 people in 2023/2024 and are now writing a second letter to some 311,000 people from the same group.
More than 25,000 people have had HRP added to their NI record since the issue came to light, with over £100 million in state pension back payments issued to claimants. Previous figures showed the average arrears payment was for more than £8,000.
How to Check Your Records
Mr Pemberthy said it is always worth checking how much state pension you should get. He said: "State pension entitlement can be complex, so it is always worth checking your record, however confident you are about your personal finances. This is relatively easy to do – and will soon be even easier when the pension dashboard is launched – but this isn’t widely available yet so anyone who may be impacted should check via the pension checker on the Government website."
You typically need 30 years of NI contributions to get the full basic state pension and 35 years of contributions to get the full new state pension. You can put in a claim for HRP to be added to your NI record on the gov.uk website. If you are yet to claim your state pension, you can check how much you are on track to get using the state pension forecast tool on the Government website. If you are already claiming your pension, you can contact the Pension Service to check your details are correct.
