State Pension Error Could See Carers Owed Thousands in Backpay
If you took time off work to care for a child or someone with a long-term disability between 1978 and 2010, you may have been underpaid your state pension and could be owed thousands of pounds in backpay. This significant error relates to Home Responsibilities Protection (HRP), a system designed to reduce the number of qualifying years needed on your National Insurance record to claim the state pension, which was replaced by National Insurance credits in 2010.
Understanding the Home Responsibilities Protection Error
Your National Insurance record is crucial in determining how much state pension you receive in later life. Gaps in this record can result in not receiving the full amount. For instance, with the new state pension, most people require 35 years of National Insurance contributions to qualify for the full entitlement. HRP should have been applied automatically to those claiming Child Benefit, but forms submitted before 2000 did not include a National Insurance number, leading to HRP not being correctly recorded.
This issue also affected individuals claiming Income Support while caring for a person with a disability or long-term illness. The latest data from HMRC has identified 12,379 state pension underpayments related to missing HRP for the period ending March 31, 2025, with an average repayment of £8,377. However, some cases have resulted in much higher amounts, such as one person who reclaimed over £31,000 in backpay through MoneySavingExpert.com.
How to Check and Claim Your Entitlement
If you suspect you are not receiving the full state pension, it is essential to take proactive steps. First, check your state pension forecast or statement. The full new state pension is currently worth £230.25 per week, while the old basic state pension stands at £176.45 per week. If gaps are identified, the next step is to review your National Insurance record using the online checker tool available on GOV.UK.
To make a claim for missing HRP, you can use the online service on GOV.UK or fill out a specific form and post it to HMRC. This process not only provides backpay but also increases your future state pension entitlement.
Expert Insight from Martin Lewis
Martin Lewis highlighted this error in his recent BBC podcast, emphasizing its importance. He stated, "This is an important heads up about a state pension error that mainly affects women between the ages of 40 and 90, and especially those in their 60s and 70s, because it’s for people who took time off work between 1978 and 2010 to look after their children or to care for someone who is long-term disabled. You were meant to have got a thing called Home Responsibilities Protection, which should have given you National Insurance years to replace the ones you weren’t getting by working, and you need those National Insurance years to get a full state pension."
This issue underscores the need for vigilance in pension planning and the importance of correcting historical errors to ensure fair compensation for caregivers.
