Header compression (HC) is a useful technique for reducing the load on bandwidth-scarce wireless links. HC normally depends on the establishment and synchronisation of context at the compressor and de-compressor. In Mobile IP networks, it is desirable to transfer this context between access routers to avoid the expensive process of context reestablishment. In this paper we propose a method for avoiding the need for context re-establishment when packets are lost during handovers, as well as means for efficiently transferring the context to new access routers (by piggybacking the context on Mobile IP signalling messages). The analysis of our scheme shows that it can reduce signalling load during handovers, which is beneficial in mobile networks with frequent handovers (e.g. wireless LAN hot spots).