What if we told you that many UK pensioners might be missing out on an average of £7,859 in unclaimed pension money? Recent reports from the DWP and HMRC show this is true. Due to a long-standing mistake, many pensioners received less money than they should have. Now is the time to act.
At Clarkwell & Co. Chartered Certified Accountants in London, we know that pensions and HMRC processes can be confusing, especially for those managing retirement finances. That’s why we’re explaining who qualifies, how the mistake happened, and how to claim backdated pension payments before the opportunity ends.
What Caused the DWP State Pension Error in 2025?
The problem started with the Home Responsibilities Protection (HRP) scheme, created in 1978. It aimed to help people who took time off work to care for children or dependents keep their full basic state pension. However, from 1978 to 2010, there were major issues with how HRP was recorded.
In 2025, the DWP found a pension error caused by missing HRP records, which led to wrong National Insurance contributions being recorded. This mistake from HMRC could go unnoticed for many years, showing up now when pensioners receive less money than they should.
This error has mostly affected women, especially those who received Child Benefit for children under 16 during that time. Because of this, their National Insurance records were incomplete, which reduced their qualifying years for the State Pension.
Who Is Eligible? Check Pension Eligibility UK
Wondering if you might qualify? Let’s simplify it:
You could get a refund if you:
- Claimed Child Benefit for a child under 16 from 1978 to 2000.
- Took time off to care for someone with a disability or illness.
- Reached State Pension age after 2008 (for women) or 2010 (for men).
Even if you don’t currently get the basic State Pension, you might still qualify for a refund if your National Insurance record is affected. That’s why it’s important to check your pension eligibility in the UK as soon as you can. The sooner you find the issue, the better your chances of getting your backdated pension.
Don’t think you’re not eligible just because you haven’t received a letter. The government may not have all your past claims or family history, especially if your records were on paper.
How Much Could You Receive?
The average refund amount is £7,859, but some people may get more if they missed more years. This amount reflects the money lost because the Missing Home Responsibilities Protection was not applied correctly to their records.
This is not a bonus or a gift. It is money you should have received but didn’t due to a system failure. You can use this money to pay bills, settle loans, or treat your grandchildren. This is your chance to get back what is rightfully yours.
Some pensioners may receive over £10,000 depending on their National Insurance shortfall. In some cases, this could even lead to higher ongoing pension payments.
How to Claim HRP Credit and Get Your Money Back
Claiming your £7,859 pension refund is easier than you think. Follow these steps:
- Go to GOV.UK and find the State Pension Correction Tool.
- Use the tool to check if your HRP credits are correct.
- If there are mistakes, complete the online HRP claim form or ask for a paper version.
- Include any required documents, like proof of Child Benefit.
- Submit your application and wait for HMRC to process it.
After submitting, you might get requests for more information. Reply quickly to avoid delays. If you need help, Clarkwell & Co. can support pensioners and communicate with HMRC for you. We also assist with tax issues related to pension income through our HMRC Investigation Service in London, ensuring nothing is overlooked.
Understanding the LEAP Programme by DWP
The LEAP program (Legal Entitlements and Administrative Practice) was created to review and fix pension records affected by past administrative mistakes.
It focuses on errors such as:
- Incorrect transfer of HRP to National Insurance records
- Differences between Child Benefit records and pension contributions
So far, over 493,000 people have used the correction tool to check their records, but more than 370,000 still need to take action. The government is sending letters, but not everyone gets one. Many eligible people might not be contacted at all. This is why it’s important to check your own records.
Pension Refund Deadline UK: Act Before It’s Too Late
You must apply for the refund by December 31, 2025. Although it seems far away, the process can take a while. There are many cases waiting to be handled, so don’t wait until the last minute.
The UK pension refund deadline is strict. If you miss it, you could lose your chance for the back payment, even if your case is strong. At Clarkwell & Co., we suggest starting the process now. This way, you’ll have enough time to collect all documents, appeal if necessary, and avoid delays.
Common Questions Around Pension Underpayment in the UK
Q: What if I already receive a full pension?
You may still get extra State Pension if you qualify for HRP. Having a full basic pension doesn’t always mean your contributions are correct.
Q: Do I need an accountant to claim?
No, but it can help. At Clarkwell & Co., we have resolved many issues with HMRC. We know the process, the forms, and the evidence needed, and we can help speed things up.
Q: Can HRP credits be transferred from a partner?
Yes, sometimes HRP credits can be transferred, especially if one partner didn’t claim the Child Benefit but provided care. Contact us for help with this often-missed option.
Q: Can I still claim if the person who should have received HRP has passed away?
In some cases, the estate or surviving partner may claim on their behalf. Get professional advice before moving forward.
How Clarkwell & Co. Can Help Pensioners Like You
At Clarkwell & Co., we know that dealing with HMRC and DWP can be stressful. Our accountancy team in London helps people understand tax laws, settle disputes, and get back what they are owed.
If you’re unsure about your pension records or how to start the HRP claim process, we can help. We provide support for issues like pension underpayment, wrong National Insurance records, and unclaimed HRP.
We also offer Payroll and Pension Auto Enrolment Services for businesses and individuals who need help managing employee pensions or auto-enrolment schemes.
Don’t Let the DWP Keep What You’re Owed
The DWP and HMRC refund in 2025 is an excellent chance for many people to get money that they were unfairly denied. Many pensioners accept their payments without asking questions, but this could cost them a lot of money.
Acting now can help you recover years of underpaid pension and give you financial peace of mind. With rising living costs, it’s crucial to maximise your income.
Start by using the state pension correction tool or contact us directly. At Clarkwell & Co., we will assist you from checking your eligibility to submitting your application and beyond.
