The Department for Work and Pensions (DWP) is issuing a second letter to around 311,000 people as part of an ongoing project to correct a State Pension error that has left many people underpaid. The average arrears payment has been around £8,000 to date.
The DWP says it does not know how many people are owed money, and has been writing to people who may be missing Home Responsibilities Protection (HRP) from their National Insurance record. HRP was a historical provision designed to ensure a person's National Insurance record received credits while they were out of work to care for a child or a person with a long-term disability. Historically, this would have included women who took a career break to raise their children.
More than 25,000 records corrected
Thousands of eligible people did not have HRP added to their record, meaning their National Insurance contributions are lower than they should be, which could mean their State Pension entitlement is not as much as it should be.
Asked for an update on the issue, the DWP said more than 25,000 people have now had HRP added to their National Insurance record since the issue came to light. The department cannot confirm a figure for how many are still owed money, as in some cases missing HRP may not affect the State Pension amount, for example if a person already has enough qualifying years for the full amount.
More than £100m in arrears paid
The DWP said more than £100 million in arrears has been paid out, with the average person receiving £8,000 in back payments. HMRC and the DWP wrote to some 340,000 people in 2023/2024, and the DWP said they are currently issuing a second letter to around 311,000 of these people. All letters are due to be issued by the end of March 2027.
A claim form for HRP is included in the letter to try to make the process as easy as possible, so recipients only have to fill in the form with their details and send it back in the post.
How to check and apply
Myrtle Lloyd, chief customer officer at HMRC, said: "We're hopeful that by including the claim form in the letter, people are more likely to fill it in, send it back and find out quickly and easily whether their entitlement will increase on retirement or, if they've reached state pension age, they're owed a payout."
People can also apply for HRP to be added to their National Insurance record on the Government website, and can check if they are affected using HMRC's online HRP eligibility checker.
