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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
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Home Responsibilities Protection: recording and using HRP: where HRP is recorded

Years of HRP entitlement are recorded by HMRC NIC&EO in the liabilities folder on a person’s NPS account. The entry shows the beginning and end date of each period of HRP and the reason for its award. All years of entitlement are recorded whether or not they will ultimately be needed by the person or allowed for the purposes of calculating the person’s entitlement to the basic State Pension or Additional (State Second) Pension.

Example

A customer is awarded Child Benefit from July 1978 to August 2004. They are automatically entitled to HRP for each complete tax year from 6 April 1979 to 5 April 2003, which is the end of the tax year before the youngest child reached 16, (a total of 24 years). They then become a carer and are awarded Income Support, without registering as available for work, until June 2004. Because they were awarded Income Support they are entitled to HRP from 6 April 2003 to 5 April 2004 (1 year). The total number of years for which the conditions for HRP are satisfied is therefore 25.

The years in which a person qualifies for HRP as recorded on NPS are then used by DWP when calculating the person’s entitlement to the basic State Pension (and, where relevant, the Additional (State Second) Pension) or bereavement benefits, DWP will deduct HRP years to reduce the requisite number of qualifying years required to satisfy the second contribution condition for entitlement to the full basic State Pension. The second contribution condition is that the person has the requisite number of qualifying years.

HRP years would not be deducted if:

* the particular tax year was also a qualifying year (i.e. the required amount of National Insurance Contributions had been paid in that year);, and
* the deduction of that year would reduce the number of requisite qualifying years below 20 (see paragraph 5(7)(a) Schedule 3, SSCBA 1992).

For details of the how years of HRP can be used to enhance the amount of basic State Pension that would be payable based on paid contributions and credits, see NIM41410.