Thousands of older pensioners in the UK have recently received unexpected payments from the Department for Work and Pensions (DWP), averaging £5,496. This financial correction is part of a major government initiative to rectify long-standing errors in National Insurance (NI) records, especially related to Home Responsibilities Protection (HRP).
Let’s break down what’s happening, who’s eligible, and what steps you should take if you believe you’re affected.
Why Are Pensioners Receiving £5,496?
The payment is not a new benefit or recurring scheme. Instead, it is a retrospective correction for individuals mainly women who were underpaid their State Pension due to missing NI credits.
The issue stems from Home Responsibilities Protection (HRP), a policy introduced in 1978 to safeguard the pensions of people who stayed at home to care for children or elderly relatives. HRP was replaced by NI credits in 2010, but errors persisted in many pensioners’ records.
Some claimants particularly women who raised families before 2000 did not receive the HRP credits they were entitled to, often due to incomplete or missing Child Benefit claims in the years prior.
As a result, their State Pension amounts were calculated lower than they should have been.
Scope of the Problem
According to the DWP:
- Around 187,000 people have been affected by this historic error.
- The total amount owed is estimated to be around £1.3 billion.
- On average, each pensioner is due £5,000 to £5,500, depending on individual NI gaps.
This large-scale underpayment was first identified through audits and has led to an urgent drive to locate affected individuals and correct their records.
Who Is Eligible for the Extra Payment?
The payments target individuals who:
- Reached State Pension age before April 2016.
- Were eligible for HRP but did not receive it due to errors in how Child Benefit claims were recorded.
- Are primarily women, as they were more likely to be primary caregivers at home during the HRP period (1978–2010).
If you’re unsure about your eligibility, it is advisable to:
- Check your National Insurance record
Check your NI record on GOV.UK - Review past Child Benefit claims, especially if you raised children before 2000.
More about HRP on GOV.UK - Contact the Pension Service for a detailed record review.
Contact Pension Service
How Is the DWP Handling This?
The DWP is currently:
- Sending out notification letters to those likely affected.
- Inviting individuals to submit more information if needed.
- Issuing lump sum back payments to correct the total amount underpaid.
They expect to finish this process by late 2025, although some complex cases may take longer to resolve.
Related: Pension Credit Still Underclaimed
While these correction payments are good news, another issue remains—Pension Credit is still massively underclaimed.
As of 2025, more than 850,000 pensioners may be missing out on this means-tested top-up to the State Pension. Pension Credit can boost annual income by up to £3,900 and also unlock other benefits, including:
- Free TV licence (for those over 75)
- Help with Council Tax
- Cold Weather Payments
- Free NHS dental treatment and eye tests
To check if you’re eligible, visit:
Pension Credit calculator – GOV.UK
Impact on Future State Pension Reforms
This discovery adds pressure on the government to enhance data accuracy and transparency within the pension system. It also raises awareness among pensioners to:
- Check their NI contributions.
- Keep accurate Child Benefit records.
- Claim benefits they might be missing.
The DWP has promised to review similar cases and modernise its systems to prevent such oversights in the future.
What Should You Do If You Think You’re Affected?
- Wait for a letter – The DWP is proactively contacting most individuals.
- Check your National Insurance and Child Benefit history.
- Use the Pension Credit calculator to see if you’re eligible for additional support.
- If no letter arrives and you believe you were underpaid, contact the Pension Service directly or consult a State Pension expert.
You can also call the Pension Service helpline:
0800 731 0469 (Monday to Friday, 8am to 6pm)
Final Thought
The £5,496 payments aren’t a government giveaway, but rather a long-overdue correction for pensioners who were shortchanged for years especially women whose caregiving roles were overlooked in NI records.
This serves as a reminder for all pensioners to audit their records, ask questions, and take action if they suspect any shortfall in their retirement income.
Nand Kishor is a content writer covering business, economy, and world affairs. With a background in journalism, he focuses on clear, ethical, and insightful reporting. Outside of work, he enjoys chess, cricket, and writing short stories.
