DCHBX Data Breach Settlement in 2025: If you’ve ever claimed Child Benefit — especially any time before the year 2000 — there might be good news waiting for you. A major government error made by HM Revenue & Customs (HMRC) could mean you’re owed thousands of pounds in backdated pension payments. This issue has recently come to light and relates to a long-standing problem with Home Responsibilities Protection (HRP) — a system that was supposed to protect the State Pension entitlement of parents and carers.
Due to this HMRC pension error, hundreds of thousands of people across the UK are potentially entitled to a refund averaging £7,859 — and in some cases, significantly more. In this guide, we’ll walk you through everything you need to know: from the cause of the error to how to find out if you’re eligible, and the simple steps to make your claim.
Whether you’re a retiree, nearing retirement, or helping a family member, this article is packed with professional, easy-to-understand insights that are friendly and actionable — yet grounded in official data and facts.
DCHBX Data Breach Settlement in 2025
| Topic | Details |
|---|---|
| Error | Missing HRP credits affecting State Pension calculations |
| Who is affected | Primarily women who claimed Child Benefit before May 2000 |
| Average refund | £7,859 (some received over £16,000) |
| Action required | Check NI record, apply for missing HRP credits |
| Deadline | Government aims to resolve cases by March 2027 |
| Apply here | Official GOV.UK HRP Application |
The HMRC pension error connected to missing Home Responsibilities Protection (HRP) credits is one of the most impactful pension issues of recent times. For many retirees — especially women who claimed Child Benefit decades ago — this could be a life-changing opportunity to receive the pension payments they rightfully earned.
With an average refund of nearly £8,000 and a correction deadline set for March 2027, there’s no better time than now to check your NI record and submit your claim. Whether for yourself or a family member, this small action could yield a significant financial return.
What Is the HMRC Pension Error All About?
To fully understand the issue, we need to look back at the history of HRP. The Home Responsibilities Protection (HRP) scheme was introduced in 1978 to prevent stay-at-home parents — particularly mothers — from missing out on valuable National Insurance (NI) credits while caring for children. These credits contribute directly to your State Pension entitlement.
But there was a catch. Prior to May 2000, Child Benefit claim forms did not require the National Insurance number of the claimant. This meant that many people — through no fault of their own — were not properly credited for the years they spent raising children. These missing HRP credits translated into missing qualifying years for their pensions.
As a result, tens of thousands of individuals, primarily women over 60, have been underpaid their State Pensions — some for well over a decade.
Real-World Example:
Take Mary, for instance — a 75-year-old grandmother from Kent. She discovered she had missed out on more than 16 years of HRP credits due to this error. After checking her National Insurance record and submitting a claim, she received a lump-sum back payment of £16,966. Like Mary, many others may be eligible to receive thousands in pension adjustments.
This situation is not rare. According to The Department for Work and Pensions (DWP), approximately 237,000 people could be affected, with the government estimating that the correction project will continue until at least March 2027.
Are You Affected by the HRP Error?
You might be affected if:
- You claimed Child Benefit between 1978 and 2000.
- You were not working or earning below the NI threshold during those years.
- You or your partner did not include your NI number on the Child Benefit form.
- You are currently receiving less than the full State Pension or believe your pension payments seem lower than expected.
The missing HRP credits would appear as gaps in your National Insurance record. These gaps could directly affect how many qualifying years you have towards your full pension.
Note: HRP was replaced by automatic NI credits in 2010, so this issue is only relevant to Child Benefit claims made before then.
How to Claim Your Refund
Don’t worry — the process is relatively straightforward. Here’s a breakdown of what you need to do:
1. Check Your National Insurance Record
First, visit the GOV.UK NI checker to see your full NI history. Look for any gaps in your record, especially during years when you were claiming Child Benefit but not working full-time.
2. Use the HRP Checker Tool
Next, use the official HRP eligibility tool. This tool helps determine whether you qualify for additional HRP credits. Even if you’re unsure, it’s worth checking.
3. Complete the Application Form (CF411)
You have two options:
- Apply online: Submit the application via the GOV.UK website.
- Apply by post: Download Form CF411, complete it, and mail it to HMRC.
Be sure to include any relevant details such as dates of Child Benefit claims, your NI number, and supporting documentation if available.
4. Processing Time and Updates
HMRC aims to process applications within 15 working days. Once your NI record is updated, the DWP will reassess your pension. You can expect a response within 6 to 8 weeks following the update.
5. Receive Your Refund or Increased Pension
Depending on your situation, you may receive:
- A lump sum refund for backdated payments
- An increase in your regular State Pension payments going forward
Some recipients have reported back payments exceeding £10,000. It’s well worth investigating.
Why This Matters: The Long-Term Impact on Your Finances
The UK State Pension is one of the most important income sources in retirement. Ensuring your record is accurate could result in:
- An annual increase of up to £600 or more
- A lump sum refund covering years of underpayment
- Improved financial stability in retirement
- Better support for surviving spouses or partners if claims are made posthumously
This issue also highlights the systemic challenges faced by women, who were historically more likely to pause or end their careers to raise families. By claiming what you’re owed, you’re not just benefiting yourself — you’re also helping bring attention to a wider issue of pension fairness and gender equality.
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FAQs about DCHBX Data Breach Settlement in 2025
Can I claim on behalf of someone who has died?
Yes. If a relative — such as a parent or spouse — has passed away and you believe they were underpaid, you can submit a claim on their behalf as the executor of their estate. Be sure to include all necessary documentation.
What if I already receive the full State Pension?
Even if you’re receiving the full amount now, you might still be entitled to arrears for earlier years where you were underpaid. Don’t assume you’re ineligible — always check.
Will this affect my tax or benefits?
No, claiming HRP should not negatively affect your other benefits or create a tax liability. It’s treated as a correction to your pension entitlement, not as new income.
How long does the process take?
From application to payment or adjustment, the entire process may take up to 8 weeks. HMRC and DWP are working through a backlog, so some cases may take longer depending on complexity.
Is this refund automatic?
Unfortunately, no. You need to apply — HMRC is sending out letters to many affected people, but not everyone will be contacted. Be proactive!
