State pensioners urged to review records amid warning some have been underpaid for years

The DWP is contacting people who may be affected

State pensioners could be owed back payments (Image: Getty)

State pensioners are being urged to check whether they are due sizeable back payments from the DWP. More than 300,000 people may be affected, but benefits experts have warned that some could easily overlook the letters being sent.

The issue stems from a historic mistake that left Home Responsibilities Protection (HRP) missing from the National Insurance records of thousands of people who should have had it. HRP was a former system that protected periods when someone was out of work because of caring duties, so National Insurance contributions would still be credited and help build up entitlement to the state pension. If it should have been included on your record, your pension may be lower than it should be and you may be owed arrears.

Who may be affected by the missing HRP problem?

Rebecca Lamb, external relations lead at Money Wellness, explained which groups are most likely to be impacted. She said women who stepped away from work to raise children are among those most likely to be affected, particularly if they claimed Child Benefit before May 2000.

At that time, mothers did not have to provide their National Insurance number when claiming, meaning some HRP was never added to their records. People who left work to care for someone with a long-term illness or disability may also have been missed.

She added that some pensioners may be entitled to HRP but have never checked their National Insurance record, so they do not realise there is an issue. Older pensioners with limited support to manage finances may be especially vulnerable to missing out.

Everyone should check

Ms Lamb said anyone living alone, or anyone who struggles with paperwork or using the internet, may not realise there is a problem or know how to correct it. Some pensioners could have been receiving less state pension than they are owed for years.

She said anyone who took time out of work to raise children or care for someone should check their record rather than assume everything has already been handled correctly.

Key facts to note include:

• Home Responsibilities Protection (HRP) ran from April 6, 1978 to April 5, 2010 and was replaced by National Insurance credits in April 2010.
• From May 2000 onwards, claimants had to include their National Insurance number when applying, so people who claimed after that point are not affected.
• If you had caring responsibilities between April 1978 and May 2000, you may be missing HRP from your National Insurance record, which could mean a lower state pension than you should receive and possible back payments. Previous HMRC figures put the average payout at around £8,300.
• You can apply for HRP to be added to your National Insurance record on the Government website.

The DWP is sending letters

Once the error was identified, the DWP and HMRC began a campaign to alert people, issuing letters to around 340,000 people in 2023/2024. More than 25,000 people have had HRP added to their National Insurance record since the issue came to light, with over £100 million in state pension arrears paid out.

The DWP is writing to state pensioners who may be owed cash (Image: Getty)

A further batch of letters is now being sent to around 311,000 people. All of the letters are due to be issued by the end of March 2027, and each one includes a claim form that can be completed and returned in the post.

Myrtle Lloyd, HMRC's chief customer officer, said the hope is that including the form will make it easier for people to respond quickly and find out whether their entitlement will rise in retirement or, if they have already reached state pension age, whether they are due a payment.

People may not recognise the warning

Despite the mailout, Ms Lamb said some pensioners may still not receive or understand the message. She said some people could easily miss the letters.

Many of those affected are older pensioners, and not everyone has someone nearby to help them manage their post. Someone living with dementia or another cognitive difficulty may not understand what the letter is about.

Others may have moved and never received it, while some could mistake an unexpected Government letter for a scam and throw it away.

She also warned that not receiving a letter does not mean there is no issue. She said it is important not to assume everything is fine just because no letter has arrived.

The Government does not know exactly how many people are still owed money, so some may never be contacted. Anyone who took time out of work to raise children or care for someone should check their National Insurance record rather than wait for a letter. An error made years ago could still be affecting the amount of state pension they receive now.

Planned changes to the state pension

There are several important changes to the state pension system worth noting:

• The state pension age is rising from 66 to 67 in stages. The process began in April 2026 and will finish by April 2028. The age at which private pensions can usually be accessed will increase from 56 to 57 in April 2028.
• A new Pension Tax Allowance is being introduced from April 2027. This will provide an extra tax-free amount on top of the standard personal allowance to protect people whose only income is the state pension from paying income tax. It will apply to anyone of state pension age and will taper off as total income rises above the level of the full new state pension, which will be £13,037 from next April.
• The triple lock is also set to change. Prime Minister Andy Burnham announced at the Labour Party conference that it will be adjusted from April 2030. Under the current system, payments rise each year by whichever is highest: 2.5 per cent, average earnings growth or inflation. From 2030, the earnings measure will be removed, although Labour says the state pension increase will still broadly track earnings growth over time.
• Legislation is already in place for the state pension age to rise from 67 to 68 between 2044 and 2046, though there has been debate about bringing that timetable forward.