HMRC pension error leads to £7859 refund – know the full details
In 2025, HM Revenue and Customs (HMRC) has begun the process of refunding an average sum of £7,859 to those affected due to a pension miscalculation. The mistake relates to Home Responsibilities Protection (HRP) credits, which were created between 1978 and 2010 for people who cared for children or dependents. The error led to thousands of people having incorrect National Insurance (NI) records and receiving a lower state pension.
If you have received a letter from HMRC, it is important to know whether you are entitled to this money and how to get it.
| Aspect | Details |
|---|---|
| Reason for Refund | Missed HRP credits for people caring for children or dependents between 1978 and 2010. |
| Average Refund Amount | £7,859, with some individuals receiving significantly more. |
| Affected Individuals | Approximately 370,000 people, mainly women, who were eligible for HRP credits but didn’t have them applied correctly. |
| Eligibility | Individuals who claimed Child Benefit or were caregivers during the affected period. |
| Action Required | Respond to the HMRC letter and provide requested information promptly. |
| Official Resources | Visit the HMRC guidance page for more details. |
How did HMRC’s pension error happen?
Between 1978 and 2010, if a person was caring for children under 16 or disabled dependants and applied for Child Benefit, they should have received HRP credits.
- These credits ensured that there was no gap in the carer’s National Insurance (NI) record.
- This ensured that their State Pension was not reduced.
But due to administrative errors:
- Many eligible people did not receive these HRP credits.
- This affected women the most, as they had given up work to look after family.
- As a result, many people had their pensions reduced and were deprived of thousands of pounds.
Now HMRC and the DWP (Department for Work and Pensions) have admitted the mistake and refunds are being sent to those affected to rectify it.
Are you eligible for this £7859 refund?
To find out if you are eligible for this refund, consider these points:
1. Did you care for children or dependants between 1978 and 2010?
- If you cared for children under 16 or disabled dependants and claimed Child Benefit during that time, you should have received HRP credits.
- If you didn’t apply for Child Benefit but cared full-time, you may still be eligible.
2. Have you received a letter from HMRC?
HMRC has sent letters to 370,000 people whose pensions may have been affected by this mistake.
If you have received a letter:
- Read carefully why a refund is being given.
- Follow the instructions in the letter to confirm your eligibility.
3. What to do if you haven’t received a letter but you may be eligible?
If you haven’t received a letter from HMRC but you think you may have been affected by this mistake:
- Check your National Insurance record – by visiting the GOV.UK website.
- Contact HMRC directly and ask if there is a shortfall in your HRP credit.
How to get a refund of £7859?
Step 1: Reply to HMRC’s letter
If you have received a letter:
- Confirm your identity.
- Submit the requested documents (such as proof of claiming Child Benefit).
Step 2: Fill in the required forms
- Complete any forms sent by HMRC correctly.
- If you have any problems filling out the forms, get help from HMRC.
Step 3: Wait for confirmation
- HMRC will review the documents you have submitted.
- If the claim is approved you will be sent information on how to receive the refund amount.
Step 4: Check for possible changes to your state pension
If your National Insurance record is corrected, your state pension may increase in the future. HMRC will let you know about this.
What to do if you haven’t received a letter yet?
If you haven’t received a letter but you think you’re eligible:
- Check your National Insurance record – by visiting the GOV.UK website.
- Contact HMRC – National Insurance Helpline: 📞 0300 200 3500.
How to protect yourself from scams?
There is an increased risk of fraud in cases of large amounts of money being refunded. To protect yourself, keep these things in mind:
1. Recognize a real HMRC letter
- HMRC will only contact you through post.
- Be wary if you get any messages through email, call or text.
- A real letter from HMRC will have your name and NI number.
2. Do not give out your personal information to anyone
- Do not provide bank details or personal information in unrecognized calls, emails or messages.
- If unsure, call HMRC by going to their official website.
3. Report any suspicious communication
- Send suspicious emails to HMRC: phishing@hmrc.gov.uk.
- Report suspicious calls or texts to: HMRC’s fraud team.
Frequently Asked Questions (FAQs)
Q1: How much will I receive?
The average repayment is £7,859, although the amount you receive will be determined by the number of HRP credits that you were not paid.
Q2: When will I get my money?
After you’ve returned the information requested, HMRC will make the payment within 8 to 12 weeks.
If further checks need to be made, it will take longer.
Q3: Will fixing this error boost my pension?
Yes, fixing National Insurance records can boost your future state pension.
Q4: What if I don’t respond to HMRC’s letter?
If you don’t respond on time, you could be refused a refund and your pension won’t be fixed.