Parents with children under 12 may be missing out on state pension income – here’s how to claim what you’re owed
Thousands of working parents could be missing out on tax credits that could leave them out of pocket when they claim their pension
MUMS and dads are being urged to sign up to get national insurance credits (NICs) that could boost their state pension by thousands of pounds when they come to claim it.
Half a million of working parents could be missing out and the Department for Work and Pensions (DWP) is reminding parents to sign up.
The state pension is currently £164.35 a week - or around £8,500 a year - but the actual amount you get depends on your national insurance record.
Missing out on just one month's worth of NI credits could lose you £5,000 from the total value of your state pension, according to the HMRC.
To be entitled to your full state pension, you'll need to have worked for at least 35 years.
Those who work between 10 and 35 years will be entitled to claim a portion of the pension, depending on how long they were in employment.
How to make sure you get national insurance credits
MAKE sure you're claiming child benefit, even if one or both parents earns more than £50,000.
You can choose not to get child benefit payments, but you should still fill in the claim form for it. This will make sure you get national insurance credits, which count towards your state pension.
Claiming child benefit also means your child will get their national insurance number automatically, shortly before they’re 16. They won’t have to apply for one themselves.
You don’t have to take the child benefit cash and then pay it back as tax. Instead, you can tick a box on the application to apply for a ‘zero rate’ of child benefit.
But parents and carers who have had to take time out of work to look after children can claim credits that will make sure that the year out of paid-for employment still counts towards their 35 years.
To ensure that parents with children under the age of 12 get the credits, they'll need to submit a child benefits claim form, even if they opt out of receiving the payments.
Esther McVey, secretary of state for work and pensions said: "I urge everyone to check their eligibility and apply for any credits for which they qualify and are entitled to.
"Don’t miss out on potentially increased pay-outs from your future state pension.
"The state pension is a foundation for retirement. If you are caring for a child or a relative then you may be eligible for national insurance credits which will strengthen this foundation."
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People who claim child benefit, carer's allowance, universal credit, jobseeker's or employment and support allowance and other income replacement benefits will automatically receive NI credits.
Earlier this year, we reported that carers lose out on millions of pounds because they fail to claim pension credits.
Meanwhile, at least 70,000 of the poorest people in Britain are owed as much as £20,000 after a staggering benefits blunder by the DWP.
In related news, parents who are hoping to benefit from the childcare voucher scheme should apply now or else risk missing out on hundreds of pounds.
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