HMRC urgent state pensions alert letters as millions could have missed out on increase

HM Revenue and Customs (HMRC) has issued a warning today that individuals who claimed child benefit before a certain date could be missing out on significant sums in their state pension pots. As part of a new campaign launched today, HMRC is encouraging tens of thousands of people to check if they are eligible to boost their State Pension.

It appears that some parents who claimed Child benefits before 2000 are not receiving the State Pension payments they are entitled to due to gaps in their National Insurance records. The main group affected by this issue are women at, or nearing, State Pension age.

HMRC is urging these individuals to check for any gaps in their National Insurance record and top up their State Pension for free.

More than 250,000 people have already been contacted by HMRC informing them that they are due a substantial increase. However, those affected may need to take the initiative and check themselves.

HMRC has already written to 257,000 pensioners who could have Home Responsibilities Protection (HRP) missing from their NI record and is now reaching out to those under State Pension age to encourage them to use our eligibility checker. Officials have stated that individuals do not need to wait for the letter before making a claim.

The Home Responsibilities Protection (HRP) was applied to the National Insurance (NI) records of those who claimed Child Benefit between 1978 and 2000, to safeguard their State Pension. It reduced the number of qualifying years a person with caring responsibilities needed to receive the full basic State Pension.

This system was replaced by National Insurance credits in 2010. Tax officials have flagged up a potential hitch for those who claimed Child Benefit before May 2000 without giving their National Insurance number; they might have missed out on Home Responsibilities Protection (HRP), potentially impacting their State Pension.

HMRC has commented: "If people are missing HRP from their NI record, it doesn't automatically mean their State Pension calculation is incorrect, but it does increase the possibility, particularly if they spent a number of years away from work to raise a family. HMRC and the Department for Work and Pensions (DWP) are working to identify those people affected and encourage them to make a claim for HRP so their records can be amended."

People can check their eligibility and make a claim on GOV.UK and it takes about 15 minutes to complete. They can also claim by post using form CF411.

Exchequer Secretary to the Treasury, James Murray, said: "The State Pension is the foundation of state support for people in retirement. We are urging people to check their National Insurance records to make sure they will receive the pension they deserve."

Pensions Minister Emma Reynolds said: "The Government's priority is to ensure pensioners have security and dignity in retirement. I strongly encourage anyone who thinks they are missing out to check their eligibility and apply for Home Responsibilities Protection taking just a few minutes out of your day now could mean a boost to your retirement. People can check their National Insurance record online or via the free and secure HMRC app.

"Individuals do not need to apply for HRP if the missing year has already been counted as a qualifying year for their State Pension calculation, or are above State Pension age and already receive the full basic State Pension amount. If someone first claimed Child Benefit after May 2000, they will not be affected and do not need to contact HMRC because parents were required to include their NI number on their Child Benefit claim forms."

People can check their National Insurance record online or via the free and secure HMRC app.

If a customer makes a successful claim, HMRC will update their NI record and DWP will recalculate their State Pension entitlement. State Pension entitlements will either increase or remain the same, depending on an individual's circumstances.

Some customers over State Pension age may also receive some arrears payments.