A major State Pension error has come to light, potentially impacting hundreds of thousands of parents and carers across the UK — with some individuals owed £100,000 or more in missed payments.
According to an update, this issue primarily affects those who took time off work between 1978 and 2010 to care for children or individuals with long-term disabilities. At the heart of the problem is the Home Responsibilities Protection (HRP) scheme, which was designed to protect the State Pension entitlements of unpaid carers — particularly mothers.
What is the State Pension Error?
Between 1978 and 2010, HRP was supposed to ensure that qualifying carers received National Insurance (NI) credits for the years they weren’t in formal employment. However, a significant number of carers may have missing NI credits due to errors in record-keeping or changes in Child Benefit arrangements.
If you were receiving Child Benefit but the benefit was registered under your partner’s name — or if you were caring for a disabled individual without being in paid employment — it’s possible that your NI record is incomplete. These gaps can drastically reduce your State Pension, and the Government is no longer actively contacting affected individuals.
Who is Affected by This Pension Error?
The State Pension error largely impacts:
- Parents who stayed home to care for children under 16.
- Carers who looked after someone with a long-term illness or disability.
- Kinship carers or foster parents between 2003 and 2010.
- Individuals who were not earning enough in those years to qualify for pensionable NI contributions.
If you became a parent before May 2000, you are especially encouraged to check your National Insurance record for missing HRP years.
According to HMRC, even 13 missing years could result in a loss of over £100,000 in State Pension over a 20-year retirement.
How to Check and Claim What You’re Owed
Martin Lewis and former Pensions Minister Steve Webb have urged people to take proactive steps. While the Department for Work and Pensions (DWP) had initially contacted affected individuals, it has now stopped doing so. This means the burden now falls on individuals to check their NI records and apply for corrections where needed.
To check your eligibility or claim back missing HRP:
- Visit the HMRC portal to view your NI record.
- Use the Government’s HRP claim form if you suspect missing credits.
- Seek advice if you were a foster carer, kinship carer, or not in paid employment during the period in question.
A Crucial Reminder for Women and Carers
This State Pension error disproportionately impacts women, many of whom opted to take on caregiving roles without realising the long-term financial cost to their pensions. Those who chose to pay a reduced rate of National Insurance — known as the “small stamp” — may not qualify for HRP at all for those years.
Experts suggest that this issue is systemic, and potentially hundreds of thousands could be underpaid in retirement. The State Pension error has thus become a critical financial and social issue, especially amid growing concerns over pension poverty.
Act Now: Protect Your Future
With billions potentially left unclaimed due to the State Pension error, individuals are urged not to wait for official letters. Instead, take initiative today — review your records, speak with HMRC, and secure what you’re entitled to.
This isn’t just about numbers — it’s about recognising and valuing unpaid caregiving roles that have too often gone unnoticed in the pension system.For more startup insights and trending financial updates, visit Startup News — your daily dose of innovation, economy, and opportunity.
