State pensioners urged to take action as savers owed £8,000

Thousands of pensioners are being urged to check their records as data from the Department for Work and Pensions (DWP) shows that between January 8, 2024, and March 31, 2025, a joint State Pension correction exercise with HM Revenue and Customs (HMRC) uncovered 12,379 underpayments to women whose National Insurance (NI) records were wrong.

The issue stems from missing periods of Home Responsibilities Protection (HRP), which was introduced to help parents and carers build up qualifying years for their State Pension. In 2022, the DWP became aware of cases where HRP had not been recorded properly, leading to lower payments.

So far, more than £104 million has been paid back, with affected savers getting an average of £8,377, according to the Daily Record.

Retirement expert Helen Morrissey is now urging older people to check their records and contact the Pension Service if they think they might be affected.

She warned that many people are missing out on money they're owed, often because the letters sent out by HMRC were misunderstood, ignored, or mistaken for scams.

She said: "The State Pension system has become so confusing that even when the UK Government has communicated with those who may have a claim, the complexity and jargon has put many of them off. This means many thousands are getting less than they are entitled to."

She warned that many people don't recognise terms like "Home Responsibilities Protection," which haven't been used for years. Others are put off by the need to apply online.

Some are also afraid that taking action could actually reduce their pension, while others worry they're being targeted by fraudsters.

HRP was replaced by NI credits in 2010, but people can still apply for it for tax years between 1978 and 2010, especially if they were claiming Child Benefit or caring for someone during that time.

You may be eligible if you were:

• Getting Child Benefit for a child under 16
• Caring for someone and receiving Income Support
• A foster or kinship carer in Scotland between 2003 and 2010

You won't qualify if you were a married woman or widow paying reduced-rate NI, or if you didn't earn enough to qualify in a tax year and weren't claiming support.

In some cases, yes. If your partner claimed Child Benefit and you both cared for a child under 16 between April 1978 and April 2010, they may be able to transfer their HRP to you, but only if they don't need it themselves.

This HRP is then converted into National Insurance credits, which could help fill gaps in your record.

However, you cannot transfer HRP if you reached State Pension age before April 6, 2008.

To qualify, you must have lived with your partner during the time they were claiming Child Benefit and caring for the child, and they must agree to transfer the HRP for the relevant years.

You may be able to claim HRP for any full tax year between April 6, 1978 and April 5, 2002 if you spent at least 35 hours a week caring for someone with a long-term illness or disability.

To qualify, the person you were caring for must have received one of the following benefits:

• Attendance Allowance
• Disability Living Allowance (middle or highest rate for personal care)
• Constant Attendance Allowance

The benefit must have been paid for at least 48 weeks of the tax year (after April 6, 1988), or for the entire tax year before that date.

You can still apply for HRP even if you've already reached State Pension age. While this won't usually increase payments for past years, it could help fill gaps in your record.

If you were receiving Carer's Allowance, you don't need to apply for HRP.

You would have automatically received National Insurance credits during that time, so HRP isn't necessary. These credits should already count towards your State Pension.

Any HRP you had for full tax years before April 6, 2010 was automatically converted into National Insurance credits, if you needed them, up to a maximum of 22 qualifying years.

You can still check your record to make sure everything's correct.

Morrissey added: "Encouraging people to check their State Pension record to see if there are any gaps is vital. If there are mistakes, then they have time to correct them."

A full breakdown of who qualifies can be found on GOV.UK.