HM Revenue and Customs (HMRC) has recently reminded people to check and make sure they are not missing out on valuable State Pension entitlements due to gaps in their National Insurance (NI) record.
The issue mainly affects parents, particularly women, who claimed Child Benefit before 2000. During that time, Home Responsibilities Protection (HRP) was designed to reduce the number of NI qualifying years needed to receive the full basic State Pension. However, some people did not provide their NI number when claiming Child Benefit, and therefore their record may not reflect the HRP they were entitled to, potentially lowering the State Pension they will now receive.
Who should check?
If your employees claimed Child Benefit between 1978 and 2000, it’s worth them checking if HRP was properly applied to their NI record, especially if they took time off work to raise a family. Although HMRC is writing to those affected, they don’t need to wait for a letter — they can check their NI record online or through the HMRC app.
It takes about 15 minutes to check your record on GOV.UK. If they find any gaps, they can submit a claim online or by post. If gaps are identified and they successfully claim HRP, their NI record will be corrected, and the Department for Work and Pensions (DWP) will recalculate their State Pension. This could result in higher payments or, in some cases, back payments.
Why this matters
For those nearing, or at, State Pension age, these missing years could make a difference in retirement income. Taking a few minutes to check their records now could help ensure they receive the full pension they’ve earned.
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