If you had children between 1978 and 2000, you might be one of the thousands of parents across the UK owed money by HMRC – and you may not even know it yet. A new alert has been raised regarding underpaid National Insurance credits which could directly affect your State Pension entitlement. Here’s everything you need to know and what action you need to take immediately.
What Is This HMRC Payment About?
The issue relates to Home Responsibilities Protection (HRP) – a scheme that was designed to protect the State Pension rights of parents, especially mothers, who stayed at home to raise children. It was in place before the introduction of automatic National Insurance credits linked to Child Benefit records.
Between 1978 and 2000, many parents were eligible for HRP. However, due to gaps in the system, certain Child Benefit recipients were not properly credited, meaning they may now have lower State Pension entitlements than they deserve.
Who Is Most Likely Affected?
The group most likely to be impacted includes mothers or primary caregivers who:
- Claimed Child Benefit between 1978 and 2000
- Had gaps in their National Insurance records
- Were not properly given HRP due to incorrect or missing information
In many cases, the person who claimed Child Benefit may not have had their National Insurance Number recorded correctly, which led to missing HRP credits.
Why This Matters for Your State Pension
HRP was meant to protect parents from losing out on their State Pension for the years they were not working due to childcare. For each year of HRP received, your State Pension qualifying years would increase. Missing these years can result in lower weekly payments or even a delay in reaching the full pension entitlement.
For those retiring soon or already retired, this could amount to thousands of pounds lost over time.
How HMRC Is Addressing the Issue
HMRC, along with the Department for Work and Pensions (DWP), has acknowledged the error and is now taking steps to fix it. Letters are being sent to potentially affected individuals inviting them to check and update their National Insurance records.
The government estimates nearly 210,000 people could be due a correction, and tens of thousands could receive backdated pension increases.
However, not everyone will be contacted at once, so it’s essential to take initiative and check your own records.
How to Check If You’re Owed Money
To find out if you’re eligible for a pension correction or payment from HMRC, follow these steps:
- Visit the official HMRC or GOV.UK website
- Access your Personal Tax Account or register if you haven’t already
- Review your National Insurance contributions record
- Look for any gaps in your record between 1978–2000
- If you spot missing years and you were claiming Child Benefit during that time, you may need to fill out an application form for HRP correction
The correction will then be applied, and if eligible, your State Pension will be updated accordingly.
What Happens If You’re Owed Money?
If it turns out that your National Insurance record was incomplete and you were unfairly penalised:
- Your State Pension amount will be increased
- You could receive backdated payments, depending on how long you’ve been underpaid
- It may also affect survivor pensions, which could benefit a spouse or partner in the event of death
Some claimants may receive lump-sum arrears of £1,000 or more, depending on their individual situation.
Don’t Wait for the Letter
Although HMRC is sending letters to those affected, the process is being done in phases, and you might not receive your notice right away. That’s why the government is encouraging everyone who had children during the 1978–2000 window to take action themselves.
If you’re unsure, it’s better to check now rather than miss out on years of pension entitlement. The sooner the correction is made, the faster you can receive what you’re owed.
What If You’re Already Retired?
If you’re already claiming the State Pension, you may still be affected. Even if your retirement started years ago, your past Child Benefit claims between 1978 and 2000 could still result in a correction.
You will need to:
- Check your NI record online
- Contact HMRC using the helpline or online form
- Await confirmation and pension adjustments
Thousands of retired individuals are now discovering that their weekly pension income was reduced due to this error – don’t miss the opportunity to correct it.
Important Deadlines and Time Limits
There is currently no fixed deadline, but the government is encouraging eligible people to take action as soon as possible. As more pensioners are reaching retirement age, the need to resolve National Insurance discrepancies has become urgent.
Delaying could risk missing out on your rightful entitlements or delay the correction process by several months.
What Documents You’ll Need
To apply for a correction or get support from HMRC, try to gather the following:
- National Insurance Number
- Dates when you claimed Child Benefit
- Any letters or documents showing proof of Child Benefit claims
- Your Personal Tax Account login details
If you’re unable to access your online account, you can contact HMRC directly or visit a local pension centre for support.
Government’s Official Statement
The Department for Work and Pensions said they are “committed to ensuring everyone receives the financial support they are entitled to” and that they are working to fix this issue as quickly as possible.
However, due to the large number of affected individuals, delays are expected – so it’s even more important to act now.
How Much Could You Receive?
Depending on your individual circumstances, you could receive:
- Weekly pension increases of up to £10–£30
- Backdated payments going back several years
- In some cases, lump sums exceeding £1,000–£2,000
The exact amount will depend on the number of years of missing credits and how long you’ve been receiving your pension.
Don’t Ignore This Letter
If you receive a letter from HMRC or DWP regarding missing HRP credits, do not ignore it. These letters are genuine, and responding promptly will help you secure your full pension rights.
Even if you haven’t received a letter yet, checking your record is simple and could result in a significant financial boost.
Final Thoughts
Many UK residents who had children between 1978 and 2000 are now discovering that HMRC may owe them more than just an apology. Whether you’re retired or approaching retirement age, it’s worth checking your National Insurance record and making sure your years of childcare didn’t cost you thousands of pounds in lost pension.
Don’t wait. Check your post, log in to your account, and act today. This could be one of the most important financial moves you make this year.
