State pension technical slip-up means you could be owed thousands | Personal Finance | Finance

A technical slip-up could mean you’re owed thousands of pounds more worth of state pension, and you may not be aware of it. Whether you’re approaching the state pension age of 66, or have already reached it, now is the moment to check. More so, because the Department for Work and Pensions has slashed the pot of money it sets aside to repay those affected due to a poor response rate from those missing out on the cash. 

The issue relates to Home Responsibilities Protection (HRP), which was replaced by National Insurance (NI) credits in 2010. People received HRP automatically between 1978 and 2010 if they claimed Child Benefit for a child under 16, or Income Support because they were looking after a sick or disabled person and were not able to work.

However, it has since been discovered that the system failed to accurately record HRP credits for some claimants after the shift to NI. Those who are affected will not have received, or be on track to receive, the correct amount of state pension.

To get a full state pension, most people need around 30 to 35 qualifying years, although the exact requirement varies, and some need more.

HMRC has been trawling through records and writing to people it believes are affected. More than 300,000 letters have gone out, yet an estimated 194,000 were still thought to have incorrect NI records as of summer 2025.

You’re more likely to be affected if you’re aged between 41 and 90. The average underpayment is £5,000, but many stand to receive far more. One woman told MoneySavingExpert she received 15 years’ worth of back payments, totalling £31,674.

Despite the scale, the DWP has reduced the repayment budget from £1.2billion to £29.8million. In its latest report, it admitted the project has seen “much lower activity levels” than expected, with large numbers simply not responding to calls to check their records.

Check your NI record online or through the free HMRC app. Check if you have any missing qualifying years that fall within that 32-year timeframe that shouldn’t be there. The quickest way to claim missing HRP is online. You can also call the National Insurance helpline on 0300 200 3500 for support.

To apply, complete form CF411 via the Government’s website. If approved, HMRC will add the credits to your record, potentially boosting your future pension and triggering an overdue lump-sum back payment.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

DEAL OF THE WEEK

Lucky Aldi customers can win back the cost of their Christmas shopping every day until December 24. Shoppers who purchase their festive groceries at Aldi can enter the daily prize draw by emailing their full name, county of residence and a copy of their receipt to aldidoesadvent@aldi.co.uk. One winner will be randomly selected each day to receive an Aldi voucher that covers the value of their shop, up to a maximum of £100.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

On the subject of state pensions, there’s a separate check you should make. Even if your HRP credits are correct, you may still be missing NI years that could reduce your pension entitlement.

Each tax year counts as a “qualifying year” once you’ve built enough NI credits through work, caring or claiming certain benefits. You need at least 10 years to receive any state pension, and roughly 35 years for the full amount.

Currently, the rules allow you to buy back up to six years. Start by checking your NI record online. If you see gaps – especially since 2019 – it may be worth plugging them.

Next, check your state pension forecast. If it’s below the current full new rate of £230.25 a week, and you have missing years, topping up might boost your eventual payout. Before paying for the years, see whether you can fill gaps for free.

NI credits can be earned for being on statutory sick pay or caring for a child, and grandparents providing childcare can have credits transferred to them if the parent claims Child Benefit.

If you do need to pay, recent years cost between £795 and £907, but the returns can be worth it. Buying a year for around £824 could add about £340 a year to your pension, meaning you break even in roughly three years.

Before making a decision, contact the Future Pension Centre on 0800 731 0175 if you’re under pension age, or the Pension Service on 0800 731 0469 if you’re over it. They’ll confirm whether buying extra years will genuinely be worth it.