- Hundreds of thousands of parents, predominantly mothers, are missing out on an average of £5,000 in state pension top-ups due to historical underpayments.
- The issue originates from a record-keeping error concerning Home Responsibilities Protection (HRP), a scheme active between 1978 and 2010, which was intended to automatically reduce qualifying years for state pensions for those with caring responsibilities.
- The Department for Work and Pensions (DWP) identified the problem in 2021 but has significantly reduced the funds allocated for repayments, acknowledging the challenge in rectifying the widespread issue.
- Despite HMRC issuing over 370,000 letters to potentially affected individuals since autumn 2023, the take-up for claims has been very low, with only a small proportion of underpayments compensated to date.
- The DWP has transitioned from a short-term repayment drive to an ongoing programme, meaning there is now no time limit for affected individuals to claim their owed HRP, which can be done online or by post.
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