Plan to let mother and father repair holes in state pension data in the event that they did not declare little one profit given inexperienced mild
The Government has confirmed it is going ahead with plans to let parents fix holes in their state pension records if they didn’t claim child benefit.
Details of how people can apply for the new free National Insurance credits from April 2026 are yet to be revealed.
But the move may help reassure parents considering buying state pension top-ups ahead of a looming deadline, purely to close gaps created by the child benefit trap.
People have until 5 April to take advantage of a special offer to buy missing years going as far back as 2006, after which it will revert to just the past six years.
Lib Dem MP Steve Darling: Got confirmation from Treasury it will introduce new NI credits in April 2026
After shunning parents’ pleas for years, the previous government promised to let them repair state pension records by creating a new credit they can apply for from April 2026.
Parents who do not qualify for child benefit and therefore don’t claim it can miss out on valuable credits – worth £329 a year, or £6,500 over a 20-year retirement.
Hardly anyone is aware there is a connection between child benefit and how much state pension you could receive decades from now.
This became a problem because the number of families claiming it slumped after a controversial overhaul in 2013.
Child benefit was originally reduced for those earning £50,000-plus a year, or wiped out entirely for those earning £60,000-plus – something officially known as the ‘high income child benefit charge’ or HICBC.
The rules are now eased so child benefit starts to be phased out if one member of the household earns £60,000, and payments stop altogether at £80,000.
The Liberal Democrat Work and Pensions spokesperson, Steve Darling, asked the Government when it plans to implement changes to NI credits for parents who did not claim child benefit.
Treasury Minister James Murray MP replied: ‘I can confirm that the new National Insurance credit for parents who did not claim child benefit due to the High-Income Child Benefit Charge will be implemented as planned from April 2026 to ensure that affected parents and carers do not miss out on building entitlement to the state pension.’
Former Pensions Minister Steve Webb, now This is Money’s retirement columnist, says: ‘It is good news that the government has finally confirmed it will be carrying forward plans to protect the NI records of those who decided not to claim child benefit because of the introduction of the High Income Child Benefit Charge.
‘These credits could benefit hundreds of thousands of parents – mostly mothers – who were put off claiming child benefit because it would create a tax charge for their spouse or partner.’
Webb, who is now a partner at LCP, adds: ‘Provided that the Government comes up with a system that protects this group, it should not be necessary for them to rush to fill gaps in their NI record arising solely from this issue.’
Webb replied last year to a couple wrestling with the dilemma of whether to buy top-ups before the 5 April deadline or hang on for the new NI credits system to be announced.
