The Department for Work and Pensions has issued a fresh appeal to state pensioners across the UK, urging them to verify whether they are owed substantial sums in back payments. This call to action comes despite a concerted effort by the DWP and HM Revenue and Customs to notify hundreds of thousands of potentially affected individuals.
Historical Error Leaves Thousands Owed Money
The issue stems from a significant historical administrative error concerning Home Responsibilities Protection. HRP was a crucial mechanism designed to safeguard National Insurance contribution records for individuals who took time out of employment to provide care. This could include raising children under 16 or supporting a sick or disabled relative.
Officials discovered that HRP was missing from many people's NI records for the period between 1978 and 2010. This omission has directly resulted in incorrect state pension calculations, leaving numerous individuals receiving less than their full entitlement.
Low Response Rate Despite Widespread Notification
In response to uncovering this widespread problem, HMRC undertook a major exercise, dispatching letters to approximately 370,000 people identified as potentially affected. The letters encouraged recipients to apply to have HRP added to their record, which could trigger backdated payments and an increase in their weekly state pension amount.
However, DWP Permanent Secretary Peter Schofield recently informed the Work and Pensions Committee that the public response has been disappointingly low. He expressed concern that many pensioners are continuing to miss out on money they are rightfully owed.
"I worry that many state pensioners are still losing out on the money that they are entitled to," Mr Schofield told MPs.
Shocking Statistics Reveal Scale of Non-Claim
DWP figures from March 2025 paint a stark picture of the uptake. Out of the hundreds of thousands contacted:
- Just over 67,000 applications were submitted to HMRC.
- Only 21,878 cases were passed to the DWP for processing.
- Merely 12,379 cases ultimately received arrears payments.
The total distributed so far stands at £104 million, with the average arrears payout being a significant £8,377 per person.
Why Are People Not Claiming?
Mr Schofield revealed that the department conducted research to understand the barriers preventing people from coming forward. The findings were revealing and multifaceted.
"That suggested that unfortunately some people did not believe the letter," he explained. "HMRC did a load of work to reassure people... but people did not necessarily believe it." Many apparently feared the communication was a scam.
Other reasons cited included contentment with current income levels, concerns that increased state pension might affect Pension Credit or other benefit entitlements, and a simple reluctance to engage with a matter from the distant past.
'The Door Is Still Open' Says DWP Chief
Although the formal, large-scale outreach exercise has concluded, Mr Schofield was keen to offer reassurance. "I want to reassure you we have not given up on the efforts," he told the committee.
He clarified that while standing a large team ready for an influx of claims was no longer operationally viable, the system remains fully functional and accessible. "The door is still open," he affirmed, encouraging anyone who believes they may be affected to come forward.
"We continue to work on this. The system is ready to go. When people do claim, if people come forward, people are there to deal with the claim," Mr Schofield stated.
Who Should Check Their Eligibility?
This issue primarily affects individuals who should have been awarded HRP automatically between 6 April 1978 and 5 April 2010 because they either:
- Received Child Benefit for a child under 16.
- Received Income Support because they were caring for a sick or disabled person and were unavailable for work.
The problem is believed to have disproportionately impacted women, but may include any caregiver who met the criteria during that period. Individuals who submitted an HRP claim after the year 2000 are unlikely to be affected, as NI numbers were required on forms from that point, improving record accuracy.
The DWP's message is clear: despite the low initial uptake, the opportunity to claim what is owed remains. Pensioners, particularly those with caring responsibilities in their past, are urged to investigate their eligibility for these substantial back payments.
