In a recent communication from HM Revenue and Customs (HMRC), significant information regarding Home Responsibilities Protection (HRP) and its impact on National Insurance records and State Pension entitlement has been brought to light. This development may have far-reaching implications for individuals’ retirement plans, particularly for women in their 60s and 70s who are most likely to be affected.
The Issue
Certain individuals may find that their National Insurance records lack the necessary Home Responsibilities Protection, which can subsequently influence their State Pension calculations. To address this issue, HMRC and the Department for Work and Pensions (DWP) are collaboratively working to rectify affected records and ensure that individuals receive their rightful State Pension amounts.
Who is Potentially Affected?
The crux of the matter lies in cases where individuals claimed Child Benefit before May 2000 but failed to provide their National Insurance number during the claim process. As a result, their National Insurance records might not accurately reflect the qualifying years of Home Responsibilities Protection. Consequently, their State Pension entitlement may be adversely affected. This issue primarily affects women in their 60s and 70s.
However, it’s crucial to note that individuals who initiated their Child Benefit claims after May 2000 are not susceptible to this concern. This is due to the correct recording of Class 3 National Insurance credits for parents and carers (CPC) and partial periods of Home Responsibilities Protection.
The Way Forward
To address this matter, HMRC has taken proactive steps. Starting from Autumn 2023, individuals who are likely to be affected will receive communication from HMRC, inviting them to utilise an online tool being developed for this purpose. Through this tool, individuals can determine if they meet the criteria for making a claim for Home Responsibilities Protection.
HMRC plans to reach out to potentially affected individuals in phases, prioritising those who are closest to reaching State Pension age. This approach ensures that those who are over State Pension age will be contacted first.
What Individuals Should Do
Crucially, individuals who believe they may be impacted need not contact the DWP or HMRC directly. Instead, once the online tool is made available, they can use it to check their eligibility for claiming Home Responsibilities Protection. HMRC will notify individuals and provide a link to the tool once it’s operational. In case individuals are eligible, they can proceed to make their claim online.
It’s noteworthy that additional support will be accessible for those who require assistance throughout this process.
This latest update from HMRC underscores the importance of Home Responsibilities Protection in relation to National Insurance records and State Pension entitlement. The collaboration between HMRC and DWP to rectify affected records showcases their commitment to ensuring fair and accurate pension calculations for affected individuals. For those who may be impacted, staying informed and utilising the forthcoming online tool can be key steps in securing their rightful State Pension entitlement.
© 2019 Warr & Co Chartered Accountants. Warr & Co Chartered Accountants is a member of The Institute of Chartered Accountants in England & Wales (ICAEW). Whilst the information detailed here is updated regularly to ensure it remains factually correct, it does not in any way constitute specific advice and no responsibility shall be accepted for any actions taken directly as a consequence of reading it. If you would like to discuss any of the points raised and / or engage our services in providing advice specific to your personal circumstances, please feel free to contact any one of the partners on 0161 477 6789 or contact us via our website forms. Warr & Co Chartered Accountants are registered to carry our audit work in the UK, our audit registration number is C002961684, for more information please visit www.auditregister.org.uk.
I don’t know whether I can get this HRP
It has been discovered that the system in place hasn’t accurately recorded HRP credits for some mothers, and in some cases women who took time out of work to raise children have been underpaid their State Pension over the course of their retirement.
If you think you qualified for HRP between 1978 and 2010 check your National Insurance record to ensure you received the correct NI credits due. Please go to the GOV.UK website to check; https://www.gov.uk/check-na…
Who qualified?
You should got HRP automatically, if
• You received Child Benefit in your name for a child under the age of 16, and the Child Benefit Office had your National Insurance number
or
• You received Income Support and did not need to register for work, because you were caring for someone who was sick or disabled
You should apply if
• You regularly spent at least 35 hours a week looking after someone who was claiming Attendance Allowance, Disability Living Allowance at the middle or highest rate for personal care, or Constant Attendance Allowance
or
• You were a foster carer throughout a full tax year, you didn’t receive Child Benefit, and either you weren’t in paid employment, or you didn’t earn enough in a tax year for it to count towards a basic State Pension
Changes since April 2010
For people reaching State Pension age on or after 6 April 2010, complete tax years of Home Responsibilities Protection built up before 2010, up to a maximum of 22 years, have been converted into qualifying years towards your state pension and bereavement benefits.
From 6 April 2010, parents and carers can build up qualifying years through new weekly credits for the basic State Pension and additional State Pension. In this case, you will receive a credit for each week in which:
• you get Child Benefit for children aged under 12
• you are an approved foster carer
• you spend 20 hours or more caring for someone who gets Attendance Allowance, or the middle-rate or highest-rate care component of Disability Living Allowance, or Constant Attendance Allowance, or the need for care has been certified
Notes
• If you get Carer’s Allowance you will get NI credits and will not usually need HRP.
• If you are a woman, you cannot get HRP for any year when you were entitled to pay reduced NI contributions for married women and widows, while you were working.
How to claim
Information leaflet and claim form CF411 “How to protect your State Pension if you are looking after someone at home.” is available from your local Jobcentre Plus office.
You can download a claim form here
If you need help we would suggest you contact Citizens Advice
I have applied for and been granted this HRP in October 2023. However, nothing has been implemented and indeed my national insurance record has not been updated by HMRC and at present February 2024. There is no next step indicated! Where do I go next?
Hi Pauline,
It can take a while for HMRC to update your NI record. We would suggest you call them on 0300 200 3500 to ask them for an update.
Kind regards,
David Lever
I was in the same position as yourself,after making hours of further enquiries with NI office and DWP,it came to light once I was awarded HRP I should have contacted the Pension service and reported the award as a change in circumstance.This I have now done and I should hear within 10 days the outcome,of my claim 🤞
I hope this helps you.
i applied and on the 15/1/2024 received a response advising i should hear within 15 days , To date [09/02/2024 i have heard nothing . What should i do , i have hearing and sight problems this is very difficult . Thank yu .
Hi Carol,
HMRC do seem to be delayed at the moment, unfortunately contacting them is the best way to find out how your application is progressing. They do have options for customers with auditory or visual impairments, please follow this link to see the various ways you can get in touch. https://www.gov.uk/get-help-hmrc-extra-support/cannot-use-telephone-different-way-to-contact
Kind regards,
David Lever
I applied for HRP on November 23 and was awarded this in December. Contacted DWP
in February to be told it will take up to six months for this to be processed. Find this shocking if the shoe was on the other foot they would want their money ASAP
I filled out an online form and was replied and accepted for HRP with list of relevant dates. This was all done in October 2023 , On 29th February I phoned the pension department for an update, they were surprised that I had not been contacted.
I just wanted to know when I should be informed about my state pension as I know that it will change next month.
Hi Abedimpe, thanks for you comment. Sadly we’re seeing a lot of people having to chase up DWP at the moment. So we’d advise you to contact them again.
You can check you state pension status here https://www.gov.uk/check-state-pension too.
I started fostering for Huntingdon Social Services in 1976 and had long term children throughout the years until 2001 when I removed to Spain. For the latter years I held Residence orders on 5 of the long term children. Huntingdon Social Services have acknowledged that I was a registered foster parent until 1987, no mention being made of the period of Residence orders. Do these years not count towards HRP?
Throughout that time I was never in full or part time employment so had no qualifying years, as it was at that time a requirement of Social Services that foster parents should not have outside employment.
Would I be entitled to a pension?
Hi Anne,
Thanks for your comment. We would suggest you check what your state pension position is first by going to https://www.gov.uk/check-state-pension and then contact DWP to see why you have not got HRP for the missing years.
I have contacted everyone concerned on the telephone and apparently my claim has been approved, but still no letters received. How long willI I have to wait for payment. I have three leaky roofs in need of urgent attention and am at the moment living on a widow’s pension and small Post Office Pension ??
Hi Mrs Bennett, thanks for the comment. Unfortunately the DWP work at their own pace, and so could take a while to get a reply. Worthwhile chasing them again for a timeline. If you are unhappy with time taken, please note you can make a compliant at “>https://www.gov.uk/government/organisations/department-for-work-pensions/about/complaints-procedure
To see if you state pension details have been up dated go to https://www.gov.uk/check-state-pension
I care for my Mother full time & she received a letter on the 24th May 2024 from HM REVENUE & Customs about Home Responsibilities Protection (HRP) . would like to know the implications if I do not apply on her behalf , as she is already receiving state pension from
Early 2000 and just seems so complicated .
Hi Shirley, thanks for your comment. If you do not apply, your mother’s state pension will stay the same, as HMRC seem to be asking you to apply for HRP
if you think it’s missing from your National Insurance (NI) record. If you do decide to apply, you might get an increase in her state pension if she has not already got a full state pension.
Hi Shirley, thanks for your comment. If you do not apply, your mother’s state pension will stay the same, as HMRC seem to be asking you to apply for HRP
if you think it’s missing from your National Insurance (NI) record. If you do decide to apply, you might get an increase in her state pension if she has not already got a full state pension.