A decades-old administrative error has prompted HM Revenue & Customs (HMRC) to contact thousands of women across the UK who may have been short-changed on their State Pension. At the heart of the issue lies missing National Insurance (NI) credits, which are critical to calculating how much pension a person receives. The average compensation stands at nearly £8,000 per individual, and in some cases, even the families of deceased women may be entitled to claim.
This article breaks down who is eligible, how the mistake occurred, and what steps you should take to claim what you’re owed.
What Went Wrong With HRP?
The problem stems from the Home Responsibilities Protection (HRP) scheme, introduced in 1978 to help those—mostly women—who took time off work to raise children or care for relatives. HRP reduced the number of qualifying years needed on a person’s NI record to receive the full State Pension.
Between 1978 and 2000, women who received Child Benefit were eligible for HRP. But a critical error occurred during a 2010 transition when HRP was replaced by NI credits. Some HRP records were never correctly added to NI accounts, especially for women who didn’t pay the full NI contribution because of the “married woman’s stamp.”
As a result, affected women may now have gaps in their records, reducing their State Pension and, in many cases, leaving them underpaid for years.
Who Has Been Affected?
The individuals most likely impacted by the HRP error include women who:
- Claimed Child Benefit between 1978 and 2000.
- Were the named recipient, not their partner.
- Had a child under 16 for the entire tax year.
- Did not pay the married woman’s reduced NI rate.
The married woman’s stamp, a now-defunct option, allowed some women to pay lower contributions—disqualifying them from accruing full pension entitlements even under HRP.
Those who meet the above criteria are advised to check their NI record and review any correspondence from HMRC.
How Much Are People Owed?
HMRC has acknowledged the severity of the issue and has begun paying back what’s owed. Here’s a snapshot of the data released so far:
| Time Period Reviewed | Underpayment Cases Identified | Total Owed | Average Compensation |
|---|---|---|---|
| Jan – Sept 2024 | 5,300+ | £42 million | £7,859 |
More than 370,000 letters are being sent out, with HMRC estimating around 43,000 of those affected are deceased. In those cases, relatives or estates can still claim the money owed.
How to Check If You’re Eligible
Here’s how to find out if you’re entitled to back payments:
You may qualify if:
- You received Child Benefit between 1978 and 2000.
- The benefit was paid in your name.
- Your child was under 16 for the full tax year.
- You did not use the married woman’s reduced NI rate.
What to Do Next:
- Wait for a letter – HMRC is contacting affected individuals directly.
- Check your NI record – Visit gov.uk/check-national-insurance-record.
- Confirm Child Benefit history – Request records if you don’t have them.
- Contact HMRC – If you suspect you’re affected but haven’t heard anything, call the HMRC helpline or use the online eligibility checker.
What If the Claimant Has Died?
If the person eligible has passed away, their estate or next of kin can still make a claim. To do so, you’ll need:
- A death certificate.
- Proof of relationship (e.g., a birth or marriage certificate).
- Bank details for the estate or executor.
HMRC is processing these claims to ensure families receive what’s due.
Government Reaction and Expert Criticism
Pension experts and former ministers have called the situation “shocking.” Sir Steve Webb, former pensions minister, criticized the slow response and urged HMRC to prioritize vulnerable retirees.
Campaigners argue that this could be one of the largest pension blunders in UK history, disproportionately affecting women who stayed home to raise families—a group already more likely to face financial insecurity in retirement.
What Comes Next?
According to HMRC:
- Letters will be issued in waves throughout 2024 and into 2025.
- Corrections to NI records will also boost future pension payments.
- Lump sum payments will be issued to those underpaid in the past.
If you’re eligible, act promptly to ensure you receive your entitlement. Even if you haven’t been contacted, it’s worth checking your NI history and speaking with HMRC.
This major pension correction is a stark reminder of how administrative errors can have long-term financial impacts. If you or a family member received Child Benefit between 1978 and 2000, it’s essential to check your records and take action. Don’t leave money on the table—this correction may be worth thousands.
FAQs:
Can I apply even if I don’t have my Child Benefit records?
Yes. You can request your Child Benefit history from HMRC if you no longer have the paperwork.
What is the married woman’s stamp?
It was a lower NI contribution rate available to some women until 1977. Women who opted for this rate may not have qualified for HRP.
How long does it take to receive compensation?
Once your record is corrected, back payments are usually issued as a lump sum. Timing depends on HMRC’s workload.