Women in their 60s and 70s particularly could be owed thousands (Picture: Getty)

Mistakes in people’s National Insurance records has resulted in an underpayment of thousands of pounds for many people – mostly women.

The reason why women are more likely to be affected relates to taking time off work to care for a child. Anyone who took time off to do that before 2010 could be owed money.

With women of pension age most likely to be impacted, the fact that they could be owed thousands might be something of a relief for anyone struggling with the cost of living crisis.

Here we go into more detail and explain what you can do to check…

Why you could be owed thousands in state pension payments

The ‘new’ state pension is currently £203.85 a week – but not everyone receives the full amount.

How much you receive depends on how many qualifying national insurance (NI) years you have. The common misconception is that you only accrue NI when you’re in employment – but those who take a break to care for someone else, such as a child, also accumulate payments.

Many people could be owed money after erroneous gaps were found in people’s NI records (Picture: Getty)

The system which protected primarily mothers who stopped paid work to raise children was initially called the ‘Home Responsibilities Protection’ (HRP), but this was changed to national insurance credits in 2010.

However, it came to light that the system has been hit with errors. Hundreds of thousands who cared for children have gaps in their NI records that shouldn’t be there, and this is why people could be owed a payout.

As explained by Money Saving Expert, the Government has admitted that around 210,000 people – predominantly women – could have been underpaid as much as £1.3 billion due to these gaps in their NI records.

The average amount of state pension back payment due to this issue is £2,000, with the highest found to be £33,300, according to a report published earlier this month by the National Audit Office.

Who is likely to be owed money?

Money Saving Expert explains who might be most likely to be owed money.

HMRC will begin reaching out to those affected later this year (Picture: Getty)

They state that those at risk of lower state pension payments include:

People currently aged between around 41 and 90. Those affected are mainly women in their 60s and 70s, and many will already be claiming their state pension, but others may still be under state pension age

Those who time away from paid work to look after a child at any point between 1978 and 2010

If the child you were caring for was under the age of 16 at the time (or under 20 if they were still in education or approved training)

People who claimed Child Benefit for the first time before May 2000

People who didn’t include their NI number on their Child Benefit claim.

What to do if you think you’re affected

Well, nothing… for now.

HM Revenue & Customs (HMRC), which is responsible for NI records, has confirmed it ‘intends to begin work to identify people who may be affected.’

What you do need to know is:

From autumn this year, HMRC will start contacting people likely to have been affected in phases, according to their age, with further instructions

If you are eligible, you will be able to make a claim online

Once your NI record has been updated, the Department for Work and Pensions (DWP) will recalculate your state pension and make payments for any arrears due.

MORE : How to apply for £55,000 state pension boost as deadline extended

MORE : How much the state pension could rise under triple lock in 2024

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A mistake could see people owed thousands!