Hundreds of thousands are to check whether they could be entitled to thousands of pounds after a huge error in their state pension

Hundreds of thousands of people are being urged to check whether they may be entitled to thousands of pounds in underpaid state pension.

Some parents who applied for child benefits before 2000 cannot afford the extra money because there are gaps in their Social Security records.

To ensure that they were correctly entitled to a state pension, the Home Responsibilities Protection (HRP) programme was applied to the NI records of benefit claimants between 1978 and 2000.

Those who had the protection needed fewer years of contributions to receive the full basic state pension.

However, if someone claimed Child Benefit before May 2000 and did not provide their National Insurance number, the HRP may not have been credited to their account due to a government error.

This in turn could have led to a reduction in her state pension.

HMRC and the Department for Work and Pensions (DWP) are actively contacting people who may have been affected by the error so that they can check whether they are entitled to a backdated HRP and therefore a top-up to their state pension.

This involves contacting people via letters by post.

HMRC says it has already written to 257,000 people who have reached state pension age (currently 66) and may be missing HRP from their NI record and are entitled to the money.

The organisation is currently contacting people who have not yet reached state pension age and asking them to check whether they are entitled to a raise. So far, 68,000 letters have been sent out.

Emma Reynolds, Minister for Pensions, 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 now could make a financial difference to your pension.”

Steve Webb, partner at pensions consultancy LCP and former pensions minister, added: “The Government has set aside £1 billion to pay out pension arrears to those who may not be entitled to pension credits for the time they spent at home raising children.”

“Hundreds of thousands of people have now received letters saying they may be among those who have missed out and it is important not to ignore these letters.

“Each letter could be a passport to pension arrears, which in many cases amount to thousands of pounds.

“If in doubt, it can't hurt to apply for Home Responsibilities Protection and then have the state check whether you are eligible.”

Who is affected and what can I do?

People who received child benefit before May 2000 – mostly women – may have gaps in their social security records and be entitled to a state pension.

This is because the amount of your state pension depends on your social security contributions and the number of years you have contributed.

From 1978 to 2010, parents were protected by the HRP to avoid these gaps.

This system was then replaced in 2010 by NI credits, which are still in operation today.

However, if someone applied for child benefits before May 2000 and did not provide their Social Security number on the form, the child benefit computer may not have transferred the funds to their Social Security account.

The reason why only those who claimed child benefit before May 2000 are entitled to additional state pension payments is because from that date parents had to provide their social security number when applying for child benefit.

If you contact HMRC and it is found that you have received too little, your NI records will be corrected and the Government will then recalculate state pension and wage arrears.

In addition to an increased pension payment, this can also lead to a lump sum payment.

People can check their eligibility for retrospective HRP and make a claim with HMRC. The process takes around 15 minutes.

You can also apply by post by completing form CF411, which you can download from the link above, or by calling the HMRC helpline on 0300 200 3500.

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