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Pensions

Thousands Missing Out on State Pension Cash Due to Government Error

Strategic Insights

— 2 min read

Thousands of people could be missing out on significant amounts of State Pension cash due to a government error, according to a warning from MoneySavingExpert. The error occurred because of incorrect gaps in National Insurance records, specifically those who cared for children or individuals with long-term disabilities between 1978 and 2010. This could result in reduced State Pension payments or, in some cases, people being owed thousands of pounds.

MoneySavingExpert estimates that over 100,000 people may be affected by these incorrect National Insurance gaps. The issue arises from the Home Responsibilities Protection (HRP) system, which was in place from 1978 to 2010 to protect state pension entitlement for those who didn't earn enough to accrue a state pension through paid work. Those who claimed Child Benefit, Income Support, or looked after a sick or disabled person between April 6, 1978, and April 5, 2010, should have automatically received HRP. However, many did not receive this protection, resulting in gaps in their National Insurance records and potentially lower State Pension payments.

The following individuals are more likely to be impacted by missing Home Responsibilities Protection:

  • Those presently aged between 41 and 90, although those in their 60s and 70s are primarily affected
  • Individuals who took time away from paid employment to care for a child or person with a long-term disability or illness between 1978 and 2010
  • Those who claimed Child Benefit or Income Support for the first time before May, 2000
  • Individuals who failed to include their National Insurance number on their claim

The UK government has started dispatching letters to potentially impacted individuals, with the aim of reaching all by June, 2025. However, a significant number of recipients may have disregarded the letter. Even if the letter is no longer in possession, affected individuals can still claim HRP using the government's online service.

Key Takeaways:

  • Over 100,000 people may be affected by incorrect National Insurance gaps
  • The Home Responsibilities Protection (HRP) system was in place from 1978 to 2010 to protect state pension entitlement
  • Those who cared for children or individuals with long-term disabilities between 1978 and 2010 may not have received HRP, resulting in gaps in their National Insurance records
  • Gaps in National Insurance records could result in reduced State Pension payments or unpaid State Pension
  • Individuals who claimed Child Benefit, Income Support, or looked after a sick or disabled person between April 6, 1978, and April 5, 2010, should have automatically received HRP
  • MoneySavingExpert estimates that those affected could be owed up to £10,000 a year

Statistics:

  • Over 100,000 people may be affected by incorrect National Insurance gaps (MoneySavingExpert)
  • The Home Responsibilities Protection (HRP) system was in place from 1978 to 2010
  • The State Pension age is currently 66 for both men and women, and will gradually rise to 67 for people born after April, 1960 (from 2026 to 2028)
  • A significant number of recipients may have disregarded the letter regarding missing Home Responsibilities Protection
  • The UK government aims to reach all potentially impacted individuals by June, 2025

Sources:

  • MoneySavingExpert (no date)
  • Liverpool Echo (no date)
  • HMRC (no date)

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