View more on these topics

HMRC reveals extent of mothers missing out on pension rights


Figures published by HM Revenue & Customs reveal the number of mothers missing out on National Insurance credits towards their state pension has doubled in the last two years.

Royal London, which analysed the figures, estimates that the number of mothers missing out on credits towards their state pension now totals around 50,000.

This is as a result of changes to the rules on child benefit, introduced in January 2013. The reforms mean that in couples where one partner earns more than £60,000 a year see the value of their child benefit hit by a tax a charge. This has meant that an increasing number of mothers have declined to claim child benefit.

Royal London calculates that a woman who started her family in early 2013, who has missed out on state pension credits between 2012/13 and 2016/17, could have lost five/35 of a state pension, equating to over £1,000 a year in retirement.

Child benefit claims can only be backdated for three months.

Royal London policy director Steve Webb says: “Tens of thousands of mothers with young children are missing out on vital state pension rights. HMRC were alerted to this problem last year and have done nothing about it.

“These new figures are a damning indictment of a system that is no longer working for families. The Government needs to take urgent action to ensure that mothers get the pension protection to which they are entitled”.



Major Govt review recommends speeding up state pension age increases

The state pension age will need to increase again just ten years after the Government completes its last scheduled rise, according to a key report which also recommends abandoning the state pension triple lock. The hotly-awaited Government-commissioned review by former Confederation of British Industry director general John Cridland into the state pension age has been released […]


Royal London: ‘Flexible retirement is an illusion’

Royal London has argued the idea of a “flexible” retirement with a gradual reduction in working hours is unachievable unless increases in pension saving are accelerated. Research by the provider suggests based on current contribution levels, employees may have to work into their seventies or eighties to provide a comfortable retirement. Its analysis is based […]

Mothers missing out on millions

By Steve Webb, director of policy and external communications The ninth Royal London Policy Paper discusses how thousands of mothers are missing out on state pension rights when they don’t have to Earlier this month we published the ninth Royal London Policy Paper, entitled ‘Mothers Missing out on Millions’. It focuses on the thousands of mothers […]

China’s economic bounce may already be over

By Mike Riddell (17 May 2016) Most people would explain the rally in global risky assets since mid-February as being primarily down to the spectacular volte-face from the Federal Reserve, where Janet Yellen (and others) dramatically toned down their narrative that the Fed would be hiking rates as many as four times in 2016. This explanation […]


News and expert analysis straight to your inbox

Sign up


There are 4 comments at the moment, we would love to hear your opinion too.

  1. Andrew McMillan 27th March 2017 at 9:55 am

    Correction: The tax charge kicks in at £50,000 not the £60,000 quoted above.

  2. Darn! I thought simply refusing them would prevent an admin nightmare of claiming then returning them at the end of the tax year…and I specifically asked them about the consequences and I was not informed that there would be any issues to my wife…

  3. Further research seems to confirm that mothers SHOULD get the NI credits but it is a glitch in the system. You can check on the DWP’s site here:
    And fill out a CF411 if it’s not correct…

  4. You can complete the CF411 online now, if they have a new-style Government account

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm