HUNDREDS of thousands are being urged to check if they are owed potentially thousands of pounds in underpaid state pension.
Some parents who claimed Child Benefit before 2000 are missing out on the extra cash due to gaps in their National Insurance (NI) records.
Home Responsibilities Protection (HRP) was applied to NI records of those claiming the benefit between 1978 and 2000 to ensure they got the correct state pension entitlement.
Those with the protection needed less qualifying years to receive the full basic state pension.
But, if someone claimed Child Benefit before May 2000 and did not put their NI number on their claim, HRP may not have been applied to their account due to a Government error.
This, in turn, could have seen their state pension amount reduced.
HMRC and the Department for Work and Pensions (DWP) is actively contacting people who may have been impacted by the error so they can check if they are eligible for backdated HRP and therefore a state pension top up.
It is getting in touch with people via letters in the post.
HMRC says it has already written to 257,000 people over state pension age, currently 66, who could have HRP missing from their NI record and are due money.
It is now contacting those under state pension age and urging them to check if they could get a boost, with 68,000 letters having been sent so far.
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 out of your day now could mean a boost to your retirement.”
Steve Webb, partner at pension consultants LCP and former pensions minister, added: “The Government has set aside one billion pounds to pay pension arrears to those who may have missed out on credits for time spent at home bringing up children.
“Hundreds of thousands of people have now had letters to say that they may be included in those who have missed out and it is vital not to ignore them.
“Each letter could be a passport to pension arrears running into thousands of pounds in many cases.
“If in doubt, there is no harm lodging a claim for Home Responsibilities Protection and then let the Government check whether you are entitled.”
Who is impacted and what can I do?
Those who claimed Child Benefit, largely women, prior to May 2000 could have gaps in their National Insurance (NI) record and be owed state pension cash.
This is because the amount of state pension you get is based on your NI contributions and number of qualifying years you have.
From 1978 to 2010, protection was provided for parents to avoid these gaps through HRP.
This system was then replaced in 2010 by the NI credits, which is still in operation now.
However, if someone claimed Child Benefit before May 2000 and didn’t put their NI number on the form, their credits may not have been transferred to their NI account from the Child Benefit computer.
The reason only those claiming Child Benefit before May 2000 may be due extra state pension cash is because parents had to include their NI number on their Child Benefit claim after this point.
If you get in touch with HMRC and are found to have been underpaid, your NI records will be corrected and the Government will then recalculate state pensions and pay arrears.
This could result in increased pension payments as well as a lump sum payment.
How does the state pension work?
AT the moment the current state pension is paid to both men and women from age 66 - but it's due to rise to 67 by 2028 and 68 by 2046.
The state pension is a recurring payment from the government most Brits start getting when they reach State Pension age.
But not everyone gets the same amount, and you are awarded depending on your National Insurance record.
For most pensioners, it forms only part of their retirement income, as they could have other pots from a workplace pension, earning and savings.
The new state pension is based on people’s National Insurance records.
Workers must have 35 qualifying years of National Insurance to get the maximum amount of the new state pension.
You earn National Insurance qualifying years through work, or by getting credits, for instance when you are looking after children and claiming child benefit.
If you have gaps, you can top up your record by paying in voluntary National Insurance contributions.
To get the old, full basic state pension, you will need 30 years of contributions or credits.
You will need at least 10 years on your NI record to get any state pension.
People can check their eligibility for backdated HRP and make a claim via https://www.gov.uk/guidance/apply-for-home-responsibilities-protection, with HMRC saying the process takes around 15 minutes.
You can also claim by post by filling in a CF411 form which can be downloaded off the link above or call the HMRC helpline on 0300 200 3500/
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories