Thousands of pensioners across Britain could receive state pension arrears averaging approximately £8,300 following the discovery of widespread administrative errors.
More than £100million has already been distributed to rectify historical mistakes involving National Insurance records, according to the latest HMRC figures.
A joint review by the Department for Work and Pensions and HMRC found 12,379 cases of pension underpayments between early 2024 and March 2025.
The mistakes are linked to missing Home Responsibilities Protection (HRP) credits on women’s National Insurance records – an issue first uncovered in 2022.
HRP, which ran from 1978 to 2010, was meant to protect the pensions of parents and carers who took time out of work. But gaps in records mean many of these years were never properly credited.
So far, more than 370,000 letters have been sent to people who may be affected, mostly women, warning them they could be owed money.
However, Government research shows many have not claimed, either because the letters were confusing, mistaken for scams, or because the online application process proved too difficult.
Officials are now reviewing records from 1978 to 2010 to track down those who should have received HRP credits but don’t have them recorded.
Helen Morrissey, who specialises in retirement analysis at Hargreaves Lansdown, emphasised the bewildering nature of the state pension framework.
She noted: “The state pension system has become so confusing that even when the UK Government has communicated with those who may have a claim, the complexity and jargon has put many of them off.”
Technical jargon has added to the confusion, with terms like “Home Responsibilities Protection” leaving many people unsure about what they mean.
Ms Morrissey said fear and uncertainty are stopping some from making claims.
She said: “Notably many people decided not to take action because they feared doing so might actually reduce their state pension or they were scared that they had been targeted by scammers.”
Technical jargon has added to the confusion, leaving many people unsure about what they mean
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PAShe described the government’s efforts as an “uphill battle” to reunite people with money they are owed. Even though the new state pension was brought in back in 2016 to simplify things, problems still remain, particularly for younger parents.
Ms Morrissey also warned that parents who opted out of Child Benefit because of the High-Income Child Benefit Charge could have missed out on National Insurance credits needed for their state pension.
She added: “Encouraging people to check their State Pension record to see if there are any gaps is vital – if there are mistakes, then they have time to correct them.”
Anyone who finds missing periods that line up with benefit claims such as Child Benefit can apply to have these added to their record for free. Others may choose to make voluntary contributions to boost their pension entitlement.
The government has established specific eligibility criteria for retrospective claims
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GETTYAn online tool remains available for those seeking to apply for Home Responsibilities Protection covering complete tax years between 1978 and 2010, provided they meet specific caring or parenting criteria during those periods.
The government has established specific eligibility criteria for retrospective claims. Individuals who received Child Benefit for children under 16, provided care whilst their partner claimed the benefit, or received Income Support for caring responsibilities may qualify.
Those who cared for sick or disabled individuals claiming certain benefits also fall within the scheme’s parameters.
Between 2003 and 2010, foster carers and Scottish kinship carers looking after relatives’ children can similarly apply. The online application system processes claims for complete tax years only, spanning April to April within the eligible timeframe.
Ms Morrissey stressed that ongoing awareness campaigns remain crucial to prevent similar issues affecting future pensioners.