Thousands of state pensioners are being urged to claim back £7,859 following an error made by the DWP and HMRC. The error, which affected nearly 500,000 people, involved missing Home Responsibilities Protection (HRP) between 1978 and 2010, resulting in incorrect state pension calculations. Affected pensioners are being notified to apply for the payments, which can amount to an average of £7,859 each.
While over 370,000 individuals are still being encouraged to check their eligibility, 493,000 have already begun the process. However, the money will not be paid out automatically; claimants are required to apply through gov.uk, and the deadline for receiving the payments is set for the end of 2025. For those who are eligible, the DWP and HMRC are working to rectify the missing contributions and ensure pensioners are compensated for the oversight.
What Is Home Responsibilities Protection (HRP)?
Home Responsibilities Protection (HRP) was a government initiative introduced to help those who were not in full-time paid work due to family responsibilities. HRP was meant to reduce the number of qualifying years needed to receive a full state pension.
The DWP explains:
“Home Responsibilities Protection (HRP) reduced the number of qualifying years you needed to get the full basic State Pension by up to 22 years. To get a full basic State Pension, a woman needed 39 qualifying years and a man 44 qualifying years.”
In this context, the government offered HRP to individuals who were raising children or looking after someone with a disability, which allowed them to be treated as though they were contributing to the National Insurance system even if they were not in paid employment. The protection applied to those who were entitled to Child Benefit for a child under the age of six, or those who were caring for a sick or disabled person, including a child over the age of six, who was receiving certain benefits.
The missing HRP for many pensioners has resulted in incorrect pension calculations, which has led to thousands of pensioners being underpaid. The DWP has now been working to correct this and issue payments to those affected.
Who Is Affected by This Error?
The error primarily affects people who received Child Benefit for children under the age of six, as well as those who provided care for a sick or disabled person but did not receive the correct National Insurance credits due to missing HRP.
While the error affected hundreds of thousands of individuals, most of those impacted are likely to be women who took time out of the workforce to raise children or care for family members. For many of these women, the missing HRP has led to a reduced state pension or even no state pension at all, as they failed to meet the necessary qualifying years. This payment is essential for making up for the years that were missed due to the administrative error.
The DWP further explains:
“You may have been entitled to Additional State Pension if you qualified for HRP because you: got Child Benefit for a child under the age of 6, or were looking after a sick or disabled person (including a child over the age of 6) who was getting certain benefits.”
This highlights that Additional State Pension could be due for anyone who qualified for HRP, and those who are eligible should not only apply for the standard state pension payment but should also ensure they check their eligibility for Additional State Pension.
How to Claim Missing HRP and What You Can Expect
Claimants who believe they are entitled to the payment should apply via gov.uk. There are two main ways to apply: online or by post. DWP encourages those affected to use the online tool to check if they are eligible for the payment, which will be paid in a lump sum once approved.
The DWP further outlines:
“To claim Home Responsibilities Protection (HRP), you can apply online or by post. You can also apply to transfer HRP from someone else.”
This means that even if a claimant was not the primary person entitled to HRP, they may still be able to transfer HRP from another individual. In these cases, the individual who provided the care (such as a spouse or relative) would need to apply on behalf of the claimant.
Claimants should be aware that these payments will not be issued automatically—those affected must apply for their payments. Once an application is submitted and verified, those eligible will receive the money by the end of 2025.
The Financial Impact of the Missing HRP
The missing HRP payments have affected individuals in ways that can have long-lasting financial consequences. As the government works to correct the error, the average payment for those affected is £7,859, although this amount will vary depending on the individual’s circumstances and the length of time they were affected.
It is important for affected pensioners to apply as soon as possible to ensure they receive the financial compensation they are owed. As of September, £42 million in payments had already been issued, and 37,289 applications from pensioners were processed.
While the DWP and HMRC have been working to correct the issue, pensioners who are eligible must act swiftly to ensure that they are not left without the financial support they deserve.
