Parents could be missing out on DWP State Pension back payments worth an average of £8,377, experts have warned, after historic errors left some people receiving less than they were entitled to.
Anyone who took time away from work or reduced their hours to care for children or a disabled relative between 1978 and 2010 is being urged to check whether they are affected.
Many eligible people are still unaware they could be due thousands of pounds, despite HMRC writing to hundreds of thousands of pensioners.
Why are people being paid?
The issue centres on Home Responsibilities Protection (HRP), a scheme that ran from April 6, 1978, until April 5, 2010.
The protection was designed to stop parents and carers losing out on their State Pension if they took time out of work to look after children or care for someone with a long-term illness or disability.
However, HMRC has admitted that some National Insurance records were not correctly linked to Child Benefit or Family Allowance claims, particularly before 2000 when National Insurance numbers were not always recorded.
As a result, some people built up fewer qualifying years than they should have, reducing their State Pension.
Government estimates suggest around 210,000 people may have been affected, while HMRC has already sent more than 370,000 letters to people who could be eligible.
Official HMRC figures show the average repayment is £8,377.
Experts warn some people have died before receiving money
AskRose, which says it is helping around 100,000 women investigate possible underpayments, says delays have had devastating consequences for some families.
Elaine Walker, Director of AskRose, said: "In the time it has taken to open this process up, too many of our clients have sadly passed away before being able to claim the money they were owed.
"They were left, in some cases, for more than 15 years without a fair pension and were then unable to even enjoy getting their recompense."
Who should check?
Simply having children during this period does not automatically mean you are owed money.
You may want to check if you:
- Claimed Child Benefit for a child under 16.
- Were the partner of someone claiming Child Benefit while you were the child's main carer.
- Received Income Support as a carer.
- Looked after someone with a disability or long-term illness while they received qualifying benefits.
- Took time away from work or reduced your hours because of caring responsibilities.
To have an underpayment reviewed, you generally need to have been receiving your State Pension for at least a year, meaning most people affected will now be aged 67 or over.
How can you check?
The Government has created a free online tool to help people find out whether they may be eligible for missing Home Responsibilities Protection.
If your application is successful, HMRC will correct your National Insurance record and the Department for Work and Pensions will recalculate your State Pension. Any money owed will then be paid as arrears.
Once a claim has been submitted, processing typically takes between four and six months.
Recommended reading
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What has the Government said?
A Government spokesperson previously said: "Home Responsibilities Protection was a scheme that ran between 6 April 1978 and 5 April 2010 which reduced the number of qualifying years of National Insurance contributions a person with caring responsibilities needed to receive the full basic State Pension.
"The main cause of the issue was that National Insurance numbers were not always recorded when customers claimed Child Benefit before 2000.
"HMRC and DWP are working together to correct cases as quickly as possible and have been contacting potentially affected customers, prioritising those over State Pension age."
Anyone who thinks they may have missed out is being encouraged to check their eligibility rather than wait to be contacted, as officials have previously said response rates to their letters have been low.
