An estimated 194,000 individuals may have missed out on their full state pension entitlements due to a Home Responsibilities Protection (HRP) error, according to the Department for Work and Pensions (DWP). This issue, not caused by the claimants, is now recognized as a major historical oversight in National Insurance recordkeeping.
What is Home Responsibilities Protection (HRP)?
HRP was a scheme available between 1978 and 2010 aimed at supporting individuals, mostly mothers, who were receiving Child Benefit or had caring responsibilities. It worked by reducing the number of qualifying years needed for the basic state pension, helping those who took time off work for family care duties.
The DWP expected this credit to be added automatically, but in hundreds of thousands of cases, it wasn’t. This led to pension underpayments averaging around £5,000 per person.
Government’s Slow Response and Reduced Repayment Budget
In 2021, the DWP acknowledged the issue, but its 2024/25 annual report revealed a dramatic cut in allocated repayments from £1.2 billion to just £29.8 million. The department admitted that fixing the issue is “inherently challenging” due to a low response rate and difficulties in contacting affected individuals.
Since autumn 2023, HMRC sent out 370,000 letters to those possibly impacted. However, only 12,379 people were reimbursed during 2024/25, totaling £104 million. The previous year, just 419 cases were resolved.
Shifting from Short-Term Fix to Ongoing Programme
Due to the limited success of the letter-writing campaign and online claims process, the DWP has transitioned the effort into a long-term programme. This shift removes time restrictions for eligible individuals to claim what they’re owed, though it effectively reduces short-term payouts.
How to Check and Claim Missing HRP Credits
If you think you may be affected, you can retrospectively apply for HRP either online or via post. For support or queries, contact HMRC’s National Insurance helpline at 0300 200 3500.
Expert Reaction and Criticism
Former Pensions Minister Sir Steve Webb strongly criticized the government’s efforts, stating the campaign was a “dismal failure” due to its complexity and lack of public engagement. He added that the low reimbursement figures prove the government does not expect substantial recovery of underpaid pensions.
Government’s Stance
A government spokesperson insisted that efforts are ongoing, saying:
“We are determined to help people who have been left out of pocket due to historical errors through no fault of their own. That’s why we contacted over 370,000 people, launched an online tool, and continue to promote the issue.”
Conclusion
Despite efforts to resolve the HRP underpayment error, only a small fraction of affected individuals have received what they’re owed. With the DWP now shifting to a long-term approach and reducing the compensation fund, it’s critical for potentially affected individuals to check their National Insurance record and apply as soon as possible to reclaim their missing pension credits.
FAQs
What is Home Responsibilities Protection (HRP) and how does it affect pensions?
HRP was a government scheme that protected the state pension entitlement of those who had caring responsibilities and were out of the workforce, particularly mothers. Missing HRP credits can lead to lower pension payments in retirement.
Who is eligible to claim missing HRP credits?
Anyone who received Child Benefit between 1978 and 2010, especially mothers or carers, may be eligible. They can check their National Insurance record or contact HMRC for verification.
How can I apply to correct my HRP record?
You can apply online or by post to correct missing HRP. For assistance, call HMRC’s helpline at 0300 200 3500 or use their online eligibility tool.
Why did the DWP reduce the repayment fund from £1.2bn to £29.8m?
The DWP admitted that fixing the HRP issue is difficult, and due to low response rates, it has reduced its budget while shifting to a long-term repayment strategy.
Is there a deadline to apply for HRP correction?
No. The DWP has confirmed that there will be no time limit for applying, allowing individuals to claim their owed pension credits at any time.