Some State Pension women owed almost £8,000 in underpayments

HM Revenue and Customs (HMRC) is currently undertaking a State Pension corrections exercise to address missing periods of Home Responsibilities Protection (HRP), which has led to the Department for Work and Pensions (DWP) issuing incorrect payments.

From January 8 to September 30, 2024, 5,344 instances of underpayment were identified, resulting in arrears of approximately £42 million. According to recent data released by the DWP on their progress in rectifying these historical errors, the average payout stands at around £7,859.

Steve Webb, the former Liberal Democrat pensions minister who has been investigating issues with State Pension calculations, believes that the figures from the ongoing HRP operation are set to significantly increase as the investigation progresses, reports .

Reflecting on a similar HRP effort from over ten years ago, which saw State Pension arrears payments totalling £83 million, Sir Steve, now a partner at LCP (Lane Clark and Peacock), expressed his concern: "The vast majority of those who lost were women, some of whom were underpaid for decades or even went to their grave never paid the right State Pension.

"The remaining corrections need to be handled as a matter of urgency. This should never be allowed to happen again."

Rachel Vahey, senior figure at AJ Bell and the company's head of public policy, has vocally addressed the gravity of the issue: "This is one of the biggest benefit scandals of modern times. DWP miscalculations have left thousands of pensioners - mainly women - short on their State Pension payments."

She insists that resolving this matter is imperative: "It is absolutely critical all those affected by this scandal receive the money they are owed as quickly and efficiently as possible."

In response, a spokesperson for the DWP asserts their commitment to pensioner welfare: "Our priority is ensuring pensioners receive the dignity and security they deserve in retirement and that state pension underpayment rates remain as low as possible. We have now completed the vast majority of cases in the exercise as planned with a small number of outstanding cases due to further documentation needed from the customer."

Restitution for those affected is anticipated to be completed by year-end.

The DWP had previously confirmed that people approaching their State Pension age, especially those in their sixties and seventies, are being contacted first via letters.

HRP underpayments explained

Regarding HRP underpayments, the DWP had uncovered last year that there were a significant number of State Pension cases where it appeared that Home Responsibilities Protection (HRP) periods had been neglected, leading to erroneous State Pension payouts.

Subsequent probes revealed that these discrepancies stem from inaccuracies in the National Insurance records overseen by HMRC for many individuals, both younger and older than the State Pension age.

The Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) have launched a Legal Entitlements and Administrative Practice (LEAP) corrections exercise. The aim is to identify those who may have been affected, invite them to apply, correct their records, and make both back payments and ongoing revised State Pension payments.

The DWP has estimated that due to errors in recording Home Responsibilities Protection (HRP), it underpaid between £300m and £1.5 billion of State Pension. As per the latest figures, 493,813 individuals have used the online tool on to check if they are missing HRP from their State Pension.

By the end of September last year, HMRC had processed 37,289 applications from people over State Pension age and 5,428 from those aged below 66.

What is HRP?

It was a scheme intended to protect the State Pension entitlement of parents and carers. From April 6, 2010, it was replaced by National Insurance (NI) credits.

HMRC is utilising NI records to identify as many individuals as possible who might have been entitled to HRP between 1978 and 2010 and have no HRP on their NI record.

After May 2000, it became compulsory to include an NI number on claims, so those claiming after this point will not have been affected.

Before you start the online HRP check

Before you commence the online HRP check, you will be queried about any gaps in your National Insurance record. If you are unable to locate your National Insurance record online or if you are unsure of the answers to any of the questions, you can opt for 'Do not know' and guidance will be provided on how to acquire this information.

How to use the online HRP tool

You might still be eligible to apply for Home Responsibilities Protection (HRP) for full tax years (6 April to 5 April) between 1978 and 2010, under certain conditions:

• 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

Who qualified automatically for HRP

The GOV.UK guidance explains that most individuals automatically received HRP if they met certain requirements:

• 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

A comprehensive guide to HRP can be found on