HMRC Alerts 370,000 State Pensioners About Potential Back Payments

The HM Revenue and Customs (HMRC) has reached out to approximately 370,000 individuals regarding potential state pension back payments that could total up to £8,300 each. This initiative aims to rectify issues stemming from the missing Home Responsibilities Protection (HRP) on some individuals’ National Insurance records, impacting their pension entitlements.

As of March 2025, the average amount owed in arrears to eligible individuals is reported to be £8,377. Prominent consumer advocate Martin Lewis, the founder of Money Saving Expert, has urged the public to verify their eligibility for these payments, especially given that HMRC has ceased sending letters to those who may be affected.

In response to inquiries about their outreach efforts, a government spokesperson stated, “We’re determined to help people who’ve been left out of pocket due to historical errors which are no fault of their own. That’s why we wrote to more than 370,000 people potentially affected, and launched an online tool to help people check if they can claim.” The spokesperson also mentioned ongoing campaigns to raise awareness about this issue.

Understanding Home Responsibilities Protection

The Home Responsibilities Protection scheme was operational from 1978 until 2010. Its purpose was to ensure that individuals who were not in the workforce due to childcare responsibilities or caregiving for a sick or disabled person would still receive National Insurance contributions. This scheme was crucial for maintaining state pension entitlements.

Unfortunately, some individuals have found that HRP was not applied to their records, leading to lower National Insurance contributions and subsequently reduced pension payments. This issue predominantly affects women who paused their careers to raise children, but it can also impact others who provided care during that period.

If individuals suspect that their HRP is missing, they can apply to have it added to their National Insurance record through the Government website.

Next Steps for Affected Individuals

When HRP is successfully added to someone’s National Insurance record, HMRC will assess the number of years that should be credited. The Department for Work and Pensions (DWP) will then evaluate how this adjustment affects the individual’s state pension eligibility.

If individuals disagree with the outcome of their HRP application, they should contact HMRC regarding the years credited. For disputes related to state pension entitlement, the appropriate course is to reach out to the DWP.

The HMRC’s proactive communication strategy highlights the importance of ensuring that individuals receive the benefits they are entitled to. As the campaign continues, those potentially affected are encouraged to take action and verify their National Insurance records to avoid missing out on significant financial support.