The Government plans to introduce new legislation to help some higher-earning parents with their future pensions.
In essence, if you did not claim child benefit because you earned over £50,000 when you had children, you will soon be able to claim National Insurance credits.
These credits are important for getting the full State Pension when you retire.
Why do you need National Insurance credits for your pension?
To get the full State Pension, you need a certain number of qualifying years where you have paid National Insurance contributions.
These contributions are usually made when you work and pay National Insurance.
However, if you are a parent or carer and do not work, or earn less because you are looking after children, you might not pay National Insurance.
This is where National Insurance credits come in.
They act like ‘placeholders’ for the years you are not working due to childcare.
These credits count towards your National Insurance record, as if you were working and paying National Insurance, helping you qualify for the full State Pension.
When will you be able to claim?
The Government advises that you should be able to claim from April 2026, and it will cover anyone affected since 2013. However, they have not revealed the full claiming process yet, or the full eligibility conditions.
When the claiming process opens, it is possible that thousands of individuals will apply so it is best to get your affairs in order as soon as possible.
To do this, we recommend you do two things:
- Check your National Insurance contributions record online here to see if there are any gaps.
- Speak to an experienced accountant who can help prepare the information you need for claiming.
Please get in touch if you have any questions about your National Insurance Contributions (NICs).
