A huge number of women could be issued State Pension back payments. This year, hundreds of thousands of older women could be notified by HM Revenue and Customs (HMRC) about potential gaps in their National Insurance (NI) record due to missing periods of Home Responsibilities Protection (HRP). This may have impacted the amount of Basic or New State Pension they are entitled to.
The Treasury started sending these letters over a year ago, collaborating with the Department for Work and Pensions (DWP) to correct any administrative errors as quickly as possible. Approximately 210,000 older individuals, mainly women, are set to receive a portion of underpayments totalling £1.5 billion, averaging around £5,000 each.
Those affected by this mistake are anticipated to receive any back payments by the end of next year. The DWP has previously stated that those closest to the State Pension age in their 60s and 70s are being prioritised for these letters.
The DWP estimates it underpaid between £300 million and £1.5 billion of State Pension due to errors with the recording of HRP. HRP was a scheme designed to safeguard parents’ and carers’ entitlement to the State Pension and was replaced by NI credits from April 6, 2010, according to the Daily Record.
HMRC is using NI records to identify as many people as possible who might have been entitled to HRP between 1978 and 2010 and have no HRP on their NI record.
From May 2000, it became mandatory to include a National Insurance number on claims. This means that those who claimed after this date will not have been affected.
It’s estimated that tens of thousands of individuals are due an average of £5,000 in back payments. The DWP has stated that personal representatives can claim on behalf of deceased customers.
HMRC and DWP are also running a broader campaign to ensure everyone potentially eligible is aware of the corrections exercise. Before starting the HRP
Using HRP tool
Before starting the HRP check, you’ll be asked if there are gaps in your National Insurance record. If you’re unable to locate your National Insurance record online or don’t know the answers to any of the questions, you can select ‘Do not know’ and you’ll be guided on how to obtain this information.
The online HRP tool can still be used to apply for HRP, for full tax years (6 April to 5 April) between 1978 and 2010, if any of the following were true:
- you were claiming Child Benefit for a child under 16
- you were caring for a child with your partner who claimed Child Benefit instead of you
- you were getting Income Support because you were caring for someone who was sick or disabled
- you were caring for a sick or disabled person who was claiming certain benefits
The guidance on GOV. UK explains that most people automatically received HRP if they were:
- foster carer
- caring for a friend or family member’s child (‘kinship carer’) in Scotland
HRP eligibility
The guidance on GOV.UK explains that most people got HRP automatically if they were:
- getting Child Benefit in their name for a child under the age of 16 and they had given the Child Benefit Office their National Insurance number
- getting Income Support and they did not need to register for work because they were caring for someone who was sick or disabled
If your partner claimed Child Benefit instead of you, and you reached State Pension age before April 6, 2008, you cannot transfer HRP. However, you may be able to transfer HRP from a partner you lived with if they claimed Child Benefit while you both cared for a child under 16 and they do not need the HRP.
The Home Responsibilities Protection (HRP) can be transferred to you for any ‘qualifying years’ on your National Insurance record between April 1978 and April 2010, which will then be converted into National Insurance credits. However, if you were a married woman or a widow during any complete tax year, you are not eligible for HRP.
If you were caring for a sick or disabled person, you can only claim HRP for the years you spent caring for someone with a long-term illness or disability between April 6, 1978 and April 5, 2002. The person you cared for must have been receiving one of the specified benefits for at least 48 weeks of each tax year on or after April 6, 1988 or every week of each tax year before April 6, 1988.
Even if you are over State Pension age, you can still apply for HRP. However, you will not usually receive any increase in State Pension that may have been due for previous years.
If you were receiving Carer’s Allowance, there is no need to apply for HRP as you’ll automatically get National Insurance credits and would not usually have needed HRP.
If you were a foster carer or caring for a friend or family member’s child, you must apply for HRP if, for a full tax year between 2003 and 2010, you were either: All of the following must also be true:
- you were not getting Child Benefit
- you were not in paid work
- you did not earn enough in a tax year for it to count towards the State Pension
If you reached State Pension age on or after 6 April 2010
Any Home Responsibilities Protection (HRP) you had for complete tax years prior to April 6, 2010 was automatically converted into National Insurance credits, if required, up to a maximum of 22 qualifying years.
