DWP Urges 200,000 Parents to Claim Missing State Pension Top-Up Before It’s Too Late

Thousands of parents in the UK, primarily mothers, are being urged to claim missing state pension top-ups potentially worth up to £5,000 on average, following a significant error by the Department for Work and Pensions (DWP).

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DWP state pension top-up. creddit : canva | en.Econostrum.info - United Kingdom

Thousands of parents in the UK are being urged to come forward to claim missing state pension top-ups, potentially worth up to £5,000 on average. 

The Department for Work and Pensions (DWP) has acknowledged a significant error affecting around 200,000 people, mostly mothers, due to the failure to apply Home Responsibilities Protection (HRP) to their National Insurance records.

The issue, which has resulted in underpayments to individuals, has left many parents in financial limbo, unable to access the pension entitlements they are rightfully owed. Despite attempts to remedy the situation, the DWP has faced considerable challenges in reaching those affected.

An Overlooked Pension Safeguard

Between 1978 and 2010, HRP was designed to help those with caring responsibilities or receiving Child Benefit by reducing the number of qualifying years needed for a full state pension. This protection was meant to be applied automatically to those who claimed Child Benefit, which predominantly benefited mothers. 

However, the DWP discovered in 2021 that many of those who should have received the HRP adjustment had not. This oversight has resulted in substantial underpayments for those affected, amounting to £5,000 on average.

According to the DWP’s latest report, the failure to reach out to all individuals impacted by the error has significantly slowed the process. 

The department admitted that the initial repayment efforts were inadequate, leading to only a fraction of the underpaid pensions being addressed. In the 2024/25 fiscal year, just over 12,000 claims were rectified, compared to the hundreds of thousands potentially affected.

Challenges in the Correction Process

The DWP is now shifting its approach to an ongoing programme, allowing affected individuals to claim their missing payments without a strict deadline. 

However, the department has faced difficulties in generating sufficient engagement from those eligible to claim. Since 2023, HMRC has sent over 370,000 letters to those it believes are impacted, but a low response rate has hindered progress.

Former pensions minister Sir Steve Webb has criticised the DWP’s reliance on an online claims process, which he believes has contributed to the low take-up. He described the letter-writing campaign as a “dismal failure” and pointed out that many affected individuals may struggle to navigate the complicated process.

The DWP insists it is committed to rectifying the issue, continuing to raise awareness through direct communications and an online tool to help people check if they are owed money. However, with the repayment fund significantly reduced from an initial £1.2 billion to just £29.8 million, the department faces an uphill battle in addressing the full scope of the underpayments.

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