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The UK Government’s efforts to resolve state pension underpayments have fallen significantly short, with only a small percentage of eligible individuals receiving what they’re owed.
The issue primarily revolves around missing Home Responsibilities Protection (HRP) years, which affects many pensioners, especially women who paused their careers to provide care for children or dependents.
DWP’s Underpayment Correction Scheme Falls Short
Despite allocating £1.1 billion to rectify these underpayments, the Department for Work and Pensions (DWP) has only disbursed around £104 million, equating to roughly one-tenth of the estimated amount.
| Key Statistics | Details |
|---|---|
| Letters Sent | 370,000 |
| Cases Identified | 12,379 |
| Total Paid | £104 million |
| Estimated Total | £1.1 billion |
| Average Owed | £7,800 per person |
| Underpayments in 2024–2025 | £450 million |
The DWP’s recent report highlights that the strategy implemented has not reached most of the intended recipients, leading to widespread concern.
Root Cause: Missing HRP Years and Digital Barriers
In 2022, the DWP discovered a widespread error in state pension payments linked to unaccounted HRP periods.
These errors predominantly impacted women who left work for caregiving during the HRP-qualifying years from 1978 to 2010.
Several issues have contributed to the failure of outreach efforts:
- Digital-only application process excludes older citizens unfamiliar with online systems.
- Many dismissed the letters as potential scams and failed to act.
- A lack of understanding about the link between child benefit claims and HRP eligibility.
- Some recipients believed it was too late to correct their records.
Expert Reactions: Urging for Stronger Measures
Steve Webb, a partner at LCP and long-time advocate for addressing HRP issues, expressed his frustration:
“Writing to elderly individuals and directing them to an online system was destined to be ineffective… Many people are understandably cautious and hesitant.”
He emphasized the need for more proactive and accessible outreach, especially since this payment is a right, not a privilege for many affected pensioners.
What Is Home Responsibilities Protection (HRP)?
HRP was introduced to protect the National Insurance contributions of people who left the workforce for caregiving roles.
Although the scheme ended in 2010 and was replaced by NI credits, individuals from the qualifying period can still apply to have HRP reflected in their pension record.
Eligibility for HRP – Who Qualifies?
If you were caring for a child or an adult between 1978 and 2010, you might still qualify for HRP. Below is a breakdown of the eligibility:
| Eligibility Criteria | Description |
|---|---|
| Received Child Benefit | For a child under 16 |
| Partner received Child Benefit | While caring for the child |
| Claimed Income Support | Due to caregiving |
| Provided Care | For someone on disability benefits |
| Foster/Kinship Carers | Scotland-specific (2003–2010) |
Applications must be submitted using the CF411 form, available on the UK Government’s website. The corrected information can be backdated on National Insurance records, possibly increasing current state pension entitlement and issuing retroactive payments.
Call to Action: Check Your Pension Record Now
Fleur Iannazzo, a financial wellbeing expert at Aon, urges eligible individuals to verify their state pension records immediately:
“Anyone who thinks they may have missed HRP years should act now. Completing form CF411 may reveal thousands in missed payments.”
She also recommends getting trusted support from family or friends to navigate the online system or calling the DWP helpline for help.
The Government’s handling of state pension underpayments due to missing HRP years has been ineffective, with only a fraction of those affected receiving due payments.
With an average underpayment of £7,800 per person, it’s crucial that eligible individuals act quickly by checking their eligibility and submitting the required documentation.
While the DWP has acknowledged the issue, stronger efforts and simpler processes are necessary to ensure pensioners are rightfully compensated.
FAQs
What is the CF411 form used for?
The CF411 form is used to apply for Home Responsibilities Protection (HRP) to correct missing years on National Insurance records that could affect state pension entitlements.
Who is eligible for HRP correction?
Eligibility includes individuals who were caring for children or disabled individuals between 1978 and 2010, received child benefit, or claimed income support for caregiving reasons.
How much money could I be owed?
The average underpayment per affected person is around £7,800, though amounts vary based on individual circumstances and caregiving years.