The Government is preparing to launch new measures aimed at assisting parents who did not claim child benefit due to higher earnings in securing their future pension entitlements.
This initiative targets individuals who bypassed child benefit claims because they earned an annual salary of more than £50,000 when they had children.
If this applies to you, the scheme will enable you to apply for National Insurance credits.
These are important as they allow you to claim the full State Pension when you retire.
Why does this support my pension?
Claiming the full State Pension means that you need to have paid National Insurance over a certain period of year, typically accumulated through employment.
Parents or caregivers not engaging in paid work or earning minimally while caring for children risk missing out on these contributions.
National Insurance credits are designed to bridge this gap, acting as a stand-in for the years not covered by direct contributions – ensuring these individuals remain eligible for the full State Pension.
However, those who have not claimed child benefit may have missed out on these credits.
For those who refrained from claiming child benefit due to higher income levels, this scheme presents an opportunity to reclaim missed credits, crucial for qualifying for the State Pension.
When can I claim?
The scheme is touted to come into force in April 2026 – with anyone impacted since 2013 able to claim.
Details on eligibility and how to claim are currently pending.
Given the potential influx of applications, it is advisable to organise your records promptly.
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