State Pension Error: Parents Could Be Owed £100,000+ Due to Missing NI Credits
Did you know some parents in the UK could be missing out on over £100,000 in State Pension? Yes, really. And it’s all because of a simple state pension error in their National Insurance (NI) records.
Between 1978 and 2010, thousands of parents, mostly mums, didn’t get the NI credits they deserved. These credits help us build up our State Pension. But for years, many didn’t even know they were missing.
Why? Because the credits were linked to the Child Benefit. And if the benefit was claimed in a partner’s name, the actual caregiver didn’t get credit for it.
Now, the government is reviewing these cases. But they may not catch every mistake. That’s why it’s so important that we check our records ourselves.
What are NI Credits and Why They Matter?
National Insurance (NI) credits are years added to our NI record. They count towards the State Pension. To get the full new State Pension, we need 35 qualifying years, or at least 10 for some payments. Credits include paid work, but also time out caring for kids or relatives. They fill gaps so we don’t lose pension value.
The Specific Error Affecting Parents
From 1978 to 2010, the Home Responsibilities Protection (HRP) scheme should have added NI credits automatically. It applied when we were getting Child Benefit or Income Support for care duties. But forms before 2000 didn’t need an NI number. That led to many parents, mainly mothers, missing the record link. As a result, their NI accounts show gaps where they didn’t earn.
State Pension Error: Who’s Affected
We’re mostly talking about parents who stopped paid work to raise kids or care for a disabled person. This includes carers, foster carers, and kinship carers up to 2010. If Child Benefit was put in a partner’s name before 2000, even though you did the caring, HRP often didn’t link to your record. Now, people between 41 and 90 may be affected, but especially those in their 60s or 70s.
How Much Could Be Owed?
Missing NI credits shave years off our record. One lost year can cut a pension by around £300 annually. That adds up fast. Over a 20-year retirement, missing 13 years could cost £100,000+. Some have already received big back-payments like £7,859 on average, and even £31,674 in some cases.
Recent Trends and Government Action
HMRC and DWP have sent letters to hundreds of thousands flagged for missing HRP. Since late 2023, around 370,000 letters have gone out. Yet few responded: initial hopes of 90% take-up dropped to just 8%.
Still, more than £735 million and possibly up to £1 billion is earmarked for repayments. DWP aims to resolve claims by March 2027.
How to Check Your NI Record?
We can check online at gov.uk or in the HMRC app. It only takes a few minutes. We should spot gaps covering the 1978-2010 window and match them with our childcare years. We can also call the NI helpline (0300 200 3500) or request the CF411 form and check a State Pension forecast.
What to Do If You Spot a State Pension Error?
If we see missing HRP years, we can claim them. Online via GOV.UK, or by sending form CF411. We’ll need evidence like Child Benefit details, carer benefits, or foster-carer records. After approval, HMRC updates the NI record. DWP recalculates our pension. If we already get a pension, they add arrears. If not, our forecast improves.
Government Response and Efforts
DWP has slowed its outreach due to low response. It cut repayment budget from £1 billion to £29.8 million, planning only modest future spending. Critics call the process too complex and poorly communicated. Despite this, the HMRC/DWP review continues into 2027 to trace everyone affected.
Final Tips and Takeaways
It really pays to check now. We may be missing HRP credits that protect our pension. It affected parents and carers between 1978-2010. Errors cost up to £100,000+. The government is trying to fix records, but many don’t respond. So, we must act. Check, claim, and secure the pension we deserve.
Frequently Asked Questions (FAQ)
You may not get a full State Pension if you have gaps in your National Insurance record or haven’t made enough payments over the required number of years.
You can call the International Pension Centre at +44 191 218 7777 or fill out an online form on the UK government’s official website.
The full State Pension is the weekly amount the UK government pays people who have made enough National Insurance contributions during their working life.
As of 2025, Pension Credit tops up income to about £218.15 a week for single people and £332.95 a week for couples. Rates may change yearly.
Disclaimer:
This content is for informational purposes only and is not financial advice. Always conduct your research.