Did you know that you could protect your entitlement to the State Pension by making a claim for Child Benefit?
Child Benefit is a universal benefit payable to a person who is responsible for a child under 16 (or under 20 if in approved education or training), as a contribution from the government towards the cost of raising the child. It entitles you to £20.70 for the first child, and £13.70 for each additional child per week. Child benefit received for children under 12 also entitles you to National Insurance credits, which can help protect your entitlement to a State Pension.
This is particularly important for couples where one partner has chosen not to work in order to raise the child, as they will not be paying National Insurance contributions through employment. Making a Child Benefit claim in the name of the partner who does not work can protect their entitlement to a State Pension. Even if you are already claiming child benefit as the working partner, it’s possible to change this and transfer the National Insurance Credits across to protect your partner’s state pension.
Some people with income over £50,000 do not claim Child Benefit, as they may have to pay the High Income Child Benefit Charge. This can be anything up to 100% of the child benefit entitlement depending on annual income. However, it is still possible to claim Child Benefit but choose not to receive the payments. This means you do not have to pay the charge, but can still benefit from the associated National Insurance credits which protect your state pension.
To find out more about how you can use Child Benefit to claim National Insurance Credits, contact one of our team.
