‘Huge boost’ for parents’ state pension prospects as HMRC announces new details to resolve Child Benefit saga
Parents and guardians can get National Insurance credits for a child under 12 by claiming Child Benefit
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Parents and carers’ state pension prospects have been given a “huge boost” today as the Government announced plans to resolve a Child Benefit saga.
The Government has unveiled further details on its plans to ensure parents and carers can claim National Insurance credits for years where they have not claimed Child Benefit for a child under 12.
Parents and guardians can get National Insurance credits for a child under 12 by claiming Child Benefit. The credits could help fill gaps in their National Insurance record, thus boosting their state pension entitlement, but some missed out by not claiming Child Benefit.
The Government announced last year it would legislate to introduce a route for parents and carers to apply for National Insurance credits for the tax years they did not claim Child Benefit, to ensure they don’t miss out on their state pension entitlement.
Individuals will be able to claim this credit from April 2026, HMRC said in a new publication today
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Individuals will be able to claim this credit from April 2026, HMRC said in a new publication today.
The eligibility for the credit will be closely based on Child Benefit eligibility criteria, and transitional arrangements will ensure those affected since 2013 are still able to claim.
HMRC said applications will be available for six years following the relevant tax year, and secondary legislation will be brought forward “as soon as possible”.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “The state pension prospects for many parents and carers received a huge boost today as the Government announced detail on how they can plug gaps in their National Insurance records caused by not claiming Child Benefit.”
Parents or guardians with an individual income of more than £60,000 have opted against claiming Child Benefit in recent years, after a Child Benefit tax affecting “high income” earners was introduced.
The High Income Child Benefit tax Charge (HICBC) affects people with individual income of more than £50,000, and Child Benefit is lost entirely to the tax for workers on £60,000 or more.
Ms Morrissey said: “The introduction of the High Income Child Benefit Tax Charge back in 2013 prompted many people to stop claiming Child Benefit.
“However, many didn’t realise they were also missing out on vital credits towards their state pension.
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“Subsequent efforts to enable them to claim the National Insurance credit without receiving Child Benefit did help but many parents and carers were still left with gaps in their records that would lead to a lower state pension.”
Ms Morrissey welcomed today’s details on measures to help affected people fill National Insurance gaps.
She said: “It’s a welcome step forward in resolving a saga that has added unnecessary complexity to people’s retirement planning.”