HMRC Identifies Underpayments and Launches Correction Program

HMRC Identifies Missing Periods in State Pension Payments for Older People

HM Revenue and Customs (HMRC) has sent letters to 370,000 older people asking them to check their State Pension after identifying missing periods where they should have been paid more. So far, 5,344 underpayments have been identified, with total arrears of around £42 million. The average back payment is £7,859.

The issue dates back to 2022 when the Department for Work and Pensions (DWP) found that periods of Home Responsibilities Protection (HRP) were missing from some people's National Insurance records. This meant they were not paid the correct amount of State Pension.

The DWP and HMRC launched the Legal Entitlements and Administrative Practice (LEAP) program to help identify people with missing HRP on their State Pension records. 493,813 people used an eligibility tool on GOV.UK, and the DWP has prioritized sending letters to people in their 60s and 70s who are closest to State Pension age.

Anyone who thinks they may be impacted can check online using the self-identification tool on GOV.UK. By the end of September 2023, HMRC had processed 37,289 applications from people over State Pension age and 5,428 from those under 66. So far, the DWP has paid out £42 million in back payments.

The DWP estimates that between £300m and £1.5 billion in State Pension payments were underpaid due to issues with HRP. HRP was given to those who had to look after children or adults and was replaced by National Insurance (NI) credits on April 6, 2010.

HMRC is using NI records to find people who may have been eligible for HRP between 1978 and 2010 but don't have it recorded. It is estimated that tens of thousands of people are owed an average of £5,000 in back payments.

HMRC and DWP are also running a wider campaign to ensure that everyone who might be eligible is aware of the corrections process.

Who may be eligible for HRP?

You were claiming Child Benefit for a child under 16.

You were caring for a child with a partner who claimed Child Benefit.

You were receiving Income Support for caring for someone who was sick or disabled.

You were caring for a sick or disabled person who was claiming certain benefits.

Additionally, between 2003 and 2010, individuals who were foster or kinship carers in Scotland may also have applied for HRP.

Receiving Child Benefit for a child under 16 and providing their National Insurance number.

Receiving Income Support for caring for someone sick or disabled without needing to register for work.

HRP can also be claimed for the years spent caring for a sick or disabled person if the care lasted at least 35 hours a week and the person received specific benefits. For those who received Carer's Allowance, HRP is not needed as National Insurance credits are automatically provided.

If you think you may be eligible for HRP, you can check online using the self-identification tool on GOV.UK.