A supporter of financial expert Martin Lewis shared how she successfully reclaimed over £31,000 from HMRC following his guidance. The individual, identified as Cilla, had been unknowingly underpaid her state pension for 15 years due to an issue related to outdated National Insurance credits known as Home Responsibilities Protection (HRP).
HRP was intended to reduce the required qualifying years on one’s National Insurance record for claiming the state pension. However, an investigation uncovered that numerous individuals, particularly women who had taken breaks from work to care for family members, had insufficient HRP applied to their records.
The problem stemmed from Child Benefit claim forms submitted before the year 2000 lacking National Insurance numbers, resulting in incorrect application of HRP to National Insurance records. This error may affect individuals who claimed Child Benefit between 1978 and 2000, potentially leading to gaps in their National Insurance records and a reduced state pension entitlement.
Cilla’s success story in reclaiming her underpayment was highlighted in the latest MoneySavingExpert.com newsletter, where she expressed gratitude for receiving £31,674 in back payments from HMRC. Recent statistics from HMRC revealed that 370,000 women have been contacted regarding potential underpayments, with an average repayment of £7,859 per person by the Department for Work and Pensions (DWP) so far.
HMRC identified 5,344 cases of underpayments totaling around £42 million between January 8 and September 30, 2024. While some affected individuals may have passed away, their families can still claim on their behalf. Those above pension age are being prioritized for contact by HMRC.
If you suspect you may have missed out on HRP, it is advisable to check your state pension and National Insurance records. Gaps in National Insurance records between 1978 and 2010, particularly if you took caregiving breaks during that period, could indicate missing HRP. Claims for missing HRP can be made through the online service on GOV.UK or by completing a specific form and sending it to HMRC.