A significant oversight in state pensions could mean that you are entitled to reclaim a substantial sum from the Department for Work and Pensions (DWP).
The amount of state pension you receive in your later years is contingent on your National Insurance history. Typically, under the new state pension scheme, individuals require 35 years of National Insurance contributions to receive the full entitlement.
If you are unemployed, you might be eligible for National Insurance credits, which help bridge any gaps in your National Insurance record. However, many individuals are believed to have missed out on the previous version of National Insurance credits, known as Home Responsibilities Protection (HRP).
HRP reduced the required number of qualifying years on your National Insurance record for claiming the state pension. It was replaced by National Insurance credits in 2010.
HRP should have been automatically applied to those receiving Child Benefit. Nonetheless, forms submitted before 2000 did not include National Insurance numbers, leading to HRP not being correctly accounted for in National Insurance records.
This issue also affected individuals claiming Income Support while caring for a disabled or long-term ill person.
If your National Insurance record lacks the appropriate level of HRP, you may have been underpaid your state pension and could be owed repayment. Those who took time off work to care for a child, family member with a long-term illness, or disability between 1978 and 2010 are likely affected, particularly women in their 60s or 70s.
Recent data from HMRC indicates that 370,000 women have been contacted about potential underpayments by the DWP. Respondents to these notifications revealed 5,344 cases of underpayments between January 8 and September 30, 2024, totaling around £42 million in arrears.
The amount owed varies based on the extent of the underpayment and its duration. According to DWP figures, the average reimbursement per individual is £7,859. However, some individuals have received tens of thousands of pounds in repayment, as evidenced by a case where an individual named Cilla reclaimed over £31,000.
If you suspect you are not receiving the full state pension, it is advisable to verify your state pension forecast or statement. The new state pension stands at £230.25 per week, while the old basic state pension is £176.45 per week.
In case of discrepancies, the next step is to review your National Insurance record. The government offers an online checker tool on GOV.UK for this purpose.
You can claim missing HRP through the online service on GOV.UK or by completing and mailing this form to HMRC. It is estimated that 43,000 eligible individuals have passed away, but their families can claim on their behalf.