HMRC Contacts 370,000 Women Over Potential State Pension Underpayments
HMRC has dispatched more than 370,000 letters, predominantly to women, encouraging recipients to verify if they have been underpaid and may be entitled to back payments. The letters are part of a review of National Insurance records to identify individuals who may have missed out on Home Responsibilities Protection (HRP) between 1978 and 2010.
Home Responsibilities Protection: What You Need to Know
The issue centers on people, mainly women, who missed out on an older version of National Insurance credits. HRP reduced the number of qualifying years needed on a National Insurance record to claim the state pension. It was claimed by parents and carers who took time off work to care for children or other family members, and was replaced by National Insurance credits in 2010.
HMRC discovered that Child Benefit claim forms submitted before 2000 did not include a National Insurance number, meaning the correct level of HRP may not have been transferred correctly for thousands of individuals. Consequently, they may not be receiving the correct state pension amount. Those affected are primarily stay-at-home mothers who claimed Child Benefit between 1978 and 2000.
Underpayments and Back Payments
According to the Department for Work and Pensions (DWP) latest Fraud and Error in the Benefit System report, errors involving HRP account for approximately £6 in every £10 of underpayments caused by National Insurance contribution record mistakes. HMRC figures show that 370,000 women have been contacted, with the DWP paying back an average of £7,859 per person so far.
Of those who responded to the letters, HMRC identified 5,344 cases of underpayments between January 8 and September 30, 2024, totaling about £42 million in arrears. It is estimated that 43,000 of those affected by the historic error are now deceased, but their families can claim on their behalf. Those over pension age are being prioritized and contacted first by HMRC.
