State pensioners across the UK are potentially missing out on as much as £5,400 in lifetime pension payouts due to an HMRC administrative error. This issue revolves around missing National Insurance (NI) contributions, particularly linked to the Home Responsibilities Protection (HRP) scheme.
Affected individuals—often women who cared for dependents—may receive significant arrears if they act now to correct their records.
What’s Going Wrong: The HRP Error
Between 1978 and 2010, individuals (often caregivers) were eligible for HRP credits, which helped protect their State Pension record when they weren’t working. However, data shows that thousands have missing HRP years, usually due to not providing their NI number when claiming Child Benefit.
This omission can drop their qualifying years below the required 35-year threshold, reducing pension entitlements by around £342 annually, which can accumulate to approximately £5,400 over retirement .
Who Is Affected and What Are the Impacts?
| Affected Group | Issue | Potential Lifetime Loss |
|---|---|---|
| Women (40s–90s) who claimed Child Benefit before 2000 | Missing HRP credits due to NI record gaps | Up to £5,400 |
| Self-employed caregivers or unregistered claimants | NI contributions not properly recorded | Reduced qualifying years |
Former pensions minister Steve Webb stresses the complexity of these errors and urges individuals to contact the Pension Service if they suspect an issue. DWP and HMRC are reportedly sending hundreds of thousands more letters to correct pension records over the next 18 months .
Steps to Resolve the Error
- Check Your State Pension Forecast
Use your personal tax account on GOV.UK to verify whether you’re set to receive the full State Pension. If not, missing NI years might be the cause. - Apply for HRP if Eligible
You can apply for missing HRP credits online or by post, submitting evidence such as tax years, Child Benefit claim dates, or time spent abroad. - Await Notification or Check Regularly
As part of the LEAP exercise, HMRC has already mailed 370,018 letters, with a growing backlog of over 493,800 eligibility checker hits and thousands of processed cases involving substantial arrears .
Thousands of pensioners—especially caregivers—risk losing up to £5,400 due to HMRC’s mishandling of HRP credits.
The solution? Check your State Pension forecast, identify missing years, and apply for credit corrections promptly. Pension records are being updated, and arrears are being paid—so don’t delay.
FAQs
If HRP credits weren’t applied for caregiving years, it may reduce your qualifying years and result in a significant pension shortfall.
Yes—if affected, you’re encouraged to apply for the missing credits. HMRC and DWP are actively processing such corrections.
Primarily women aged 60–90 who claimed Child Benefit before 2000 and suspect NI record gaps should check their forecast and apply without delay.
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