A supporter of financial expert Martin Lewis shared how she successfully reclaimed over £31,000 from HMRC by acting on his guidance. Identified as Cilla, a reader of MoneySavingExpert.com, discovered she had been underpaid her state pension for 15 years due to an oversight in the application of Home Responsibilities Protection (HRP) credits linked to her National Insurance record.
HRP was intended to reduce the required number of qualifying years for state pension eligibility, particularly benefiting individuals, predominantly women, who had career breaks to care for family members. A review exposed that prior to 2000, Child Benefit claim forms lacked National Insurance numbers, leading to incorrect HRP allocation.
Individuals who applied for Child Benefit between 1978 and 2000 may be affected by this issue, impacting their future state pension entitlement. Failure to receive HRP coverage could result in gaps in their National Insurance record and potential loss of full pension benefits.
The transition from HRP to National Insurance credits in 2010 marked a change in the system. Cilla shared her accomplishment of securing backdated payments after contacting the website. Her success story was featured in the latest MoneySavingExpert newsletter, expressing gratitude for the £31,674 underpayment settlement from HMRC.
Recent data from HMRC revealed outreach to 370,000 women regarding potential underpayments, with an average reimbursement of £7,859 per person by the DWP. Identified cases of underpayments between January 8 and September 30, 2024, amounted to around £42 million in arrears, with efforts focused on rectifying historical errors affecting an estimated 43,000 deceased individuals, allowing families to claim on their behalf.
Individuals suspecting underpayments are advised to review their state pension and National Insurance records. If gaps exist between 1978 and 2010 due to caregiving responsibilities, missing HRP can be claimed through the online service on GOV.UK or by submitting a form to HMRC.
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