Thousands of women across the UK are being contacted by HM Revenue & Customs (HMRC) after a historic blunder left gaps in their National Insurance (NI) records—meaning they may have been underpaid on their state pension. The average compensation owed is £7,859, with the error affecting women who claimed Child Benefit between 1978 and 2000.
Here’s everything you need to know about this correction, who is eligible, how the mistake happened, and how to claim your payment.
What Was the HRP Error?
At the heart of the issue is the Home Responsibilities Protection (HRP) scheme, which was introduced in 1978 to protect the pensions of individuals—primarily women—who stayed at home to care for children or vulnerable relatives.
HRP worked by reducing the number of qualifying years needed on your National Insurance record to receive the full State Pension. If you received Child Benefit or Income Support during that period, you were entitled to HRP.
However, a failure by HMRC to properly record or transfer HRP data to individuals’ NI records—especially during the system transition in 2010, when HRP was replaced with NI credits—means thousands of people have been undercredited and underpaid.
Who Is Affected
This issue primarily affects stay-at-home mums who:
- Claimed Child Benefit between 1978 and 2000.
- Had the benefit paid in their own name (not a partner’s).
- Had children under the age of 16 for the entire tax year.
- Did not pay the married woman’s reduced NI stamp (a lower contribution rate used by some women pre-2000).
If your HRP wasn’t correctly recorded, it may have left gaps in your NI history, resulting in reduced pension entitlements.
How Much Are People Owed?
According to HMRC:
| Time Period Reviewed | Underpayment Cases Identified | Total Owed | Average Compensation |
|---|---|---|---|
| Jan – Sept 2024 | 5,300+ | £42 million | £7,859 |
More than 370,000 letters are being sent to people who may be affected. An estimated 43,000 individuals have sadly passed away, but family members can still make a claim on their behalf.
How to Check if You’re Eligible
You may be eligible if:
- You were receiving Child Benefit between 1978 and 2000.
- You were the named recipient of the benefit (not your spouse).
- Your child was under 16 for the full financial year.
- You did not opt in to pay the married woman’s reduced NI rate.
What You Should Do:
- Wait for a letter from HMRC – If you’re in the affected group, HMRC will contact you directly.
- Check your NI record – Visit the UK Government’s NI service to check for missing years.
- Confirm Child Benefit history – You can request this information if you no longer have records.
If you believe you may be affected but haven’t yet been contacted, you can reach out directly to HMRC’s helpline or check eligibility on the GOV.UK website.
What If a Relative Has Died?
If someone affected has passed away, their estate or family can still make a claim. HMRC has procedures in place for next of kin to request compensation owed to deceased individuals. You may need to provide proof of relationship, death certificates, and relevant financial details.
Government and Expert Response
This pension error has drawn strong reactions from former ministers and pension experts. Sir Steve Webb, former pensions minister, said the scale of the problem is significant and ongoing, urging HMRC to accelerate the correction process and ensure no affected woman is left behind.
Many campaigners believe this is one of the biggest issues to ever hit the UK’s state pension system, impacting some of the most financially vulnerable retirees.
What Happens Next?
HMRC has confirmed:
- It will prioritise pensioners who are already of retirement age.
- Letters are being sent in phases throughout 2024 and 2025.
- Corrected records will also be used to increase ongoing pension payments, where applicable.
- Any owed back payments will be paid as a lump sum.
FAQs
What is Home Responsibilities Protection (HRP)?
HRP was a scheme designed to protect the pension rights of those caring for children or others, by reducing the number of years needed to qualify for the full state pension.
Who qualifies for the HMRC payout?
Those who claimed Child Benefit between 1978 and 2000, had children under 16, and did not pay the reduced married woman’s NI stamp may be eligible.
How much compensation is being paid out?
The average payment is around £7,859, though this can vary depending on individual circumstances and gaps in the NI record.
Do I need to apply to get this payment?
HMRC is contacting eligible individuals directly. However, if you believe you are affected and haven’t received a letter, you can contact HMRC.
