The UK’s tax office, HM Revenue and Customs (HMRC), is sending letters to around 370,000 people, mostly women, who may be owed an average of £7,859 due to a mistake in their pension records. The issue affects those who claimed Child Benefit between 1978 and 2000, especially stay-at-home mums who took time off work to raise children. A fault in the Home Responsibilities Protection (HRP) scheme meant some National Insurance records were not updated properly, leading to lower State Pension payments. This article explains who might be eligible, how to claim, and what to do next.
What Went Wrong?
The HRP scheme, running from 1978 to 2010, helped parents and carers by reducing the years of National Insurance contributions needed for a full State Pension. If you claimed Child Benefit for a child under 16 or received Income Support while caring for someone, you were eligible. However, before May 2000, many didn’t provide their National Insurance number when claiming Child Benefit, so their HRP wasn’t recorded. This left gaps in their records, meaning some are getting less pension than they should. HMRC is now fixing this, with £42 million already paid out to over 5,300 people between January and September 2024.
| Issue Details | Description |
|---|---|
| Affected Period | 1978 to 2000 |
| Cause | Missing HRP credits |
| Impact | Lower State Pension payments |
| Total Owed | £42 million (2024) |
Who Can Claim?
You may be eligible if you claimed Child Benefit in your name for a child under 16 between 1978 and 2000 and didn’t pay the married woman’s reduced National Insurance rate. Stay-at-home mums from the 1980s and 1990s are most affected, as many took career breaks to raise kids. If you’re over State Pension age (currently 66), HMRC is contacting you first. Sadly, around 43,000 affected people have passed away, but their families can still claim on their behalf. Check your National Insurance record on GOV.UK to see if you have gaps from those years.
| Eligibility Criteria | Details |
|---|---|
| Child Benefit | Claimed in your name, child under 16 |
| Time Period | 1978 to 2000 |
| National Insurance | Not paying reduced rate |
| Priority | Over State Pension age |
How to Check and Apply
HMRC is sending letters to those they think are affected, explaining how to check eligibility and claim. If you get a letter, follow the instructions or visit GOV.UK to review your National Insurance record. You can also call the National Insurance helpline at 0300 200 3500. If you believe you’re eligible but haven’t received a letter, use the GOV.UK HRP checker or fill out form CF411 to apply. Claims can cover full tax years from 1978 to 2010. Act quickly, as correcting your record could boost your pension and include back payments.
Why It Matters
This error has led to significant underpayments, with the Department for Work and Pensions (DWP) estimating between £300 million and £1.5 billion is owed overall. The average payout of £7,859 can make a big difference, especially for pensioners on tight budgets. For example, fixing a gap in your record could increase your weekly pension by £10 to £20. HMRC’s campaign is a chance to secure what you’re owed, but you need to respond to their letter or check your record yourself to avoid missing out.
Don’t Ignore the Letter
If you get a letter from HMRC, don’t throw it away, as it’s not a scam. It could mean thousands of pounds in back payments and a higher pension. If you’re unsure, contact HMRC directly through GOV.UK or their helpline. You can also get free advice from Citizens Advice or pension experts like Age UK. Even if you haven’t heard from HMRC but had kids between 1978 and 2000, check your National Insurance record online. Acting now could bring a welcome financial boost to your retirement.