The UK government has recently proposed new measures that will allow parents who have not claimed child benefits to retrospectively claim National Insurance credits. The move is aimed at helping those who may have missed out on contributions towards their state pension due to not claiming the benefit.
Child benefit is a payment that is made to families with children under the age of 16, or under 20 if they are in full-time education or training. It is a tax-free payment that can help to support families with the cost of raising children.
One of the benefits of claiming child benefit is that it also provides National Insurance credits towards a parent's state pension. National Insurance credits are essentially a way of filling gaps in a person's National Insurance record, which can affect their entitlement to certain state benefits such as the state pension.
However, many parents may not have claimed child benefit due to various reasons, such as not being aware of the benefit or not wanting to be taxed on their partner's income if they are a high earner. As a result, they may have missed out on National Insurance credits. This could affect their entitlement to a full state pension as they may be left short of the 35 years of National Insurance credits needed, meaning that their state pension is reduced.
Currently those who have missed out on child benefits can only backdate a claim for three months, however the new proposals would allow parents who have not claimed child benefit since 6th April 2006 to apply for National Insurance credits retrospectively. This means that parents who may have missed out on contributions towards their state pension will have the opportunity to make up for lost time.
The move has been welcomed by campaigners who have been calling for changes to the current system for some time. Many have argued that the current system is unfair, as it penalises those who may have missed out on National Insurance credits due to not claiming child benefit.
The proposals are still subject to consultation, but if they are implemented, they could make a significant difference to the retirement income of many parents. It is important for parents to be aware of their entitlement to child benefit and National Insurance credits, as they could have a significant impact on their future financial security.
