State pension BOMBSHELL: 200,000 families MISSING OUT on entitlements to BOOST their pot | Personal Finance | Finance



Of the 7.9 million households in the UK receiving child benefit, around 3 percent – more than 200,000 households – may not be benefiting from national insurance credits because the child benefit is claimed by the higher earner in the household. Your state pension entitlement can be built up using child benefit credits, providing your child is under 12 and you are not currently working or contributing towards national insurance. If the parent does not register for child benefit, they may forgo their national insurance credits, and therefore part of their future state pension. The figures were provided to the Treasury Committee by HM Revenue and Customs (HMRC).

In general, people need 35 qualifying years of national insurance contributions to be entitled to the full new state pension.

The snapshot figures, provided to the Treasury Committee by HM Revenue and Customs (HMRC), do not mean these people will definitely not get their full state pension entitlement as they may build up sufficient qualifying years over their life.

The state pension age is currently 65 for both men and women, but this is due to reach 66 by 2020.

By 2028, Britons are set to see this figure climb higher with plans for it to become 67, before eventually hitting 70.

The full new state pension is £164.35 per week.

The UK Government website advises the actual amount you get will depend on your National Insurance record.

Nicky Morgan, who chairs the committee, said: “The Treasury Committee has long-warned the Government of the risk that for families with one earner and one non-earner, that if the sole earner claims child benefit, the non-earner, with childcare commitments, forgoes national insurance credits and, potentially therefore, their entitlement to a full future state pension.

“New figures today from HMRC show that over 200,000 parents may be in this situation, and therefore missing out on their pension.

“Now we have an idea of the scale of this problem, the Government needs to pull its finger out and make sure people are aware of the issue and know how to put it right.”

A Government spokesperson said: “We want people to get the state pension they are entitled to, and have made it easier for state pension credits to be transferred between parents, so that no one loses out.”


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