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  • Shepherd Partnership

Child benefit: Parents to be given state pension boost after Government plans to overhaul tax credit

Under recently announced reforms, the government wants to address the fact that some parents who have not claimed Child Benefit could have missed out on building their state pension.

When parents claim Child Benefit, they can also receive a National Insurance credit which helps them build their state pension. This is aimed at those who, due to caring responsibilities, are out of work or not earning enough to pay National Insurance, to ensure they are still able to do that.

The Government wants to ensure that parents who have not claimed Child Benefit are not disadvantaged when they start claiming their State Pension and is announcing a resolution for affected parents.

Parents do not need to take any action immediately. The government intends to legislate to allow eligible individuals to retrospectively claim National Insurance credit, and the next steps to be taken will be published in due course.

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