**Thousands Potentially Owed in State Pension After Administrative Oversight on National Insurance Credits**
A significant number of people across the UK could be missing out on substantial State Pension payments due to administrative errors in government records, according to a warning from finance experts at MoneySavingExpert (MSE). The issue specifically concerns those who took time out of employment to look after children or individuals with disabilities between 1978 and 2010, and it could translate to individuals being owed thousands of pounds.
MSE revealed that this problem stems from gaps in National Insurance (NI) records, which are crucial in determining the value of State Pension a person is eligible to receive. Under the present system, the amount paid out to pensioners depends on their history of National Insurance contributions, with a full record necessary to secure the maximum payment. In some cases, discrepancies have resulted in pensioners missing out on as much as £10,000 a year.
The complicating factor behind these missing credits is the former Home Responsibilities Protection (HRP) scheme, which was intended to support those who were not in paid work due to caring responsibilities. Introduced in 1978 and running until April 2010, HRP was designed to reduce the number of qualifying years needed for a full State Pension, granting safeguards to those who claimed Child Benefit for children under 16 or received Income Support because of caring commitments.
For example, someone who needed 30 years of NI contributions to earn the full pension but spent five years out of paid work caring for a child should have had those years protected by HRP, thereby reducing the minimum required to 25 years. Yet, MSE estimates that over 100,000 individuals – predominantly women who took caring breaks in the 1980s and 1990s – could have unrecognised gaps in their NI records due to HRP not being correctly applied.
More concerningly, the error is thought to mostly affect those now aged between 41 and 90, with the cohort of women in their 60s and 70s most likely to be impacted. This stems from historical practices where Child Benefit, and consequently HRP, was often only awarded to mothers or required explicit transfers to partners, potentially creating confusion and missed credits.
In response to this, HM Revenue & Customs (HMRC) have begun contacting people potentially affected by missing Home Responsibilities Protection, aiming to reach all impacted individuals by June 2025. However, there are concerns that many have ignored these communications, mistaking them for fraud or thinking them irrelevant.
Personal finance experts urge that if you looked after a child or someone with a long-term illness between 1978 and 2010 and suspect a gap in your NI record, you can still apply to have your record amended. Even if the original letter from HMRC has been misplaced or discarded, claims can be made directly through the government’s official online services.
This revelation brings the importance of regularly checking personal National Insurance records into sharper focus, especially for those approaching State Pension age or already drawing their pension. Even small gaps in your NI record can have significant financial impacts throughout retirement.
At present, the State Pension age is 66 for all men and women. It is due to rise gradually to 67 between 2026 and 2028 for those born after April 1960, with further increases planned for future decades. As a result, staying informed about one’s entitlement and ensuring accurate records are more crucial than ever for long-term financial security.
Both HMRC and financial advocacy groups are encouraging individuals who believe they may be affected to take prompt action. Rectifying these errors could make a tangible difference for many in later life, particularly during a period when every penny counts for pensioners across the country.