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HMRC reveals extent of mothers missing out on pension rights

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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”.

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Comments

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:
    https://www.tax.service.gov.uk/check-your-state-pension
    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

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