From today’s DT
SAH parents are to be handed a state pension boost worth £3,600-a-year in an overhaul of tax rules
Parents who have gaps in their National Insurance (NI) record after giving up work to look after children will be able to retrospectively claim child benefit tax credits for up to 12 years. Currently, they can only backdate claims by up to three months The changes were announced as part of “tax day”, which the Government uses to set out how it plans to change the tax system in the coming year.
Many parents who are entitled to child benefit neglect to claim it because of the difficulties in doing so. However this means they miss out on vital National Insurance credits, which count towards their state pension. This would leave stay-at-home parents – usually mothers – with a lower state pension
Retirees need 35 years worth of credits on their NI record in order to qualify for the full state pension, currently worth £10,600 a year
Missing out on just one year of NI credits could cost a stay-at-home mother £302 a year. A parent who retrospectively made a claim for 12 years of child benefit would get an extra £3,634 a year added to their state pension.
