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Child benefit - when it goes, do my pension credits vanish too...

(113 Posts)
bb99 Wed 06-Oct-10 14:30:20

Just curious.

I think that SAHPs who claim CB are entitled to National Insurance credits.

So, when the CB goes in 2013, will I lose any pension rights or credits too? sad

If so, had better revise the divorce to be a better off family plan and start being nicer to DH grin

bnm Thu 07-Oct-10 12:32:48

dh and I have been talking about divorce too!!

smallwhitecat Thu 07-Oct-10 12:39:07

Message withdrawn

Bramshott Thu 07-Oct-10 12:39:09

This hasn't been confirmed yet. It looks like you should continue to claim, in order to get your HRP (Home Responsibilities Protection?), and then it will be taken back from the higher rate tax payer by changing their tax code.

George Osborne has said he "hopes people will do the right thing and not claim" but unless they work out another way of handling HRP then it looks like people will have to keep claiming in order to maintain a right to a state pension for those years.

ragged Thu 07-Oct-10 13:10:37

If you can afford it, there is the option of paying NI to qualify for state pension, no??

bb99 Fri 08-Oct-10 12:32:36

Unfortunately as we are investing heavily in our house via the mortgage, to help support our future pension (s), we can't afford to top up my NI contributions at the moment.

Oh well, maybe I could sell a kidney wink

poppyknot Fri 08-Oct-10 14:34:52

Have sent an email about this to an MSP and if I get a reply I will pass it on. (My original email ws acknowledged but it was written beofre I had worked out the loss of this.)

The silence over this aspect in the press is deafening but in the long term it might prove to be the bigger loss.

bb99 Fri 08-Oct-10 15:58:40

TIA Poppyknot - I have emailed so many MPs their poor in-boxes must be melting grin

Ineedmorechocolatenow Fri 08-Oct-10 16:06:32

I'm curious to know this too....

swissmiss Fri 08-Oct-10 16:18:40

.. me too ...

bb99 Sun 10-Oct-10 21:20:59

Well I am going to continue to claim CB and then they can get it back through the tax on DH, as he will declare it. This will atleast keep my Home Responsibility Protection (?) credits as so far there is just the vague notion that the Pensions Minister will somehow use his Jedi and omnipotent powers to ensure I still receive them if I am good enough to save on the old paperwork and stop claiming CB...

Another interesting question - what constitues a household and merged families.

DD's father has never paid maintenance for her - yes it's shocking and I was on benefits for 2 years while I found my feet...

So, can I keep her CB?

swissmiss Mon 11-Oct-10 10:31:11

DH and I have purposefully split the CB claims (more than 1 dc) between us so we both get HRP credits, as advised to by claims office. DH is contractor and work is irregular (can be 12+mths) so he then stays home and I try and get temp work. It'd be crazy if we both loose our HRP credits.

Also due to irregular work some years he hits 40% but others he does not. How will they cope with that kind of adjustment? All retrospectively I guess like the current Child Tax Credits so you don't actually have the extra money at the time you really need it!!!!

bb no idea how they will class "merged families" etc or if you will be allowed to keep DD's CB. Looks like keeping claiming it for you would make most sense and HMRC can rely on your/DH's honesty

afterglow Tue 12-Oct-10 15:34:23

I emailed my MP to ask about how NI credits would be affected by the loss of CB for sah/low earning partners of higher rate taxpayers. She has today sent a very long reply (standard) that does not actually mention NI, HRP or pensions. So I've asked her again, as she (or her staff) clearly did not read beyond Child Benefit in the subject field. If need be we will continue to claim CB and repay it, in order to receive the pension credits, but this seems a very cumbersome and inefficient way to do it. I remain hopeful that this is something that will be sorted. However if I don't get a decent answer to my latest email I may well put in a FOI request asking how much money will be saved by not paying these pension contributions.

poppyknot Tue 12-Oct-10 17:04:15

Good for you afterglow. A couple of my emails have been acknowleged but as yet no answers.

I think the HRP bit is really important and does not seem to have been picked up enough in the press to get an answer from any of the "it's the fairest way to do it" crew.

dollius Tue 12-Oct-10 19:52:23

I can tell you the answer to this. The government (DWP) has stated that women will not lose the NI credits as a result of losing child benefit. However, they have yet to say how they will ensure this. The crucial thing will be whether they introduce some other way of automatically giving credits to women when they have a baby, or if they will rely on women to claim it. If the latter, then v poor show cos a lot won't.

LadyLapsang Tue 12-Oct-10 21:04:17

Worth remembering you only need 30 years NI contributions now to get a full state pension in your own right, so even if you had about 17 years out of the workplace during your full potential earning life you would still qualify. Obviously if you choose to take time out early on for HE (if you weren't working part-time & earning enough to pay NI) then you would either have to top up or have less time on a career break later.

swissmiss Tue 12-Oct-10 21:04:35

dollius but what about SAHDs' NI credits???? It's not just women who look after children instead of being in paid employment/paying NI.

PanicMode Wed 13-Oct-10 14:14:50

I'm still waiting for my MP to respond on the pension credits issue too......

sincitylover Wed 13-Oct-10 14:34:21

Bit of a different position as not SAHM but single parent potentially affected - have written to MP (no reply yet) and also just emailed DC at no 10 after hearing him again say it's fair.

No it isn't - suggested he look at the bankers or people like Lord Ashcroft - residnet in three countries etc

PanicMode Wed 13-Oct-10 15:31:38

sincitylover - I made that point about the non doms too....

afterglow Fri 15-Oct-10 15:34:53

Well I had a completely useless reply. It was a standard spiel about hard decisions, fairness, broad shoulders which somehow managed not to mention HRP, NIC or pensions. Obviously my original 3 line question about what would happen to the NI contributions under HRP that are triggered by the receipt of child benefit wasn't clear enough. So I have asked her again in my clearest possible emboldened English.

How can it possibly be an efficient use of HMRC time to reclaim child benefit in this way? It will certainly take a big chunk out of the savings.

dinosaur Fri 15-Oct-10 15:37:47

I am a fulltime WOHP and my partner is a fulltime SAHP and I am hoping that if he carries on claiming CB, they will adjust my tax code to claw it back from me that way. It would certainly seem very unfair if it adversely affects his NI contributions.

Xenia Fri 15-Oct-10 22:27:06

A number of publications and programmes have had reasonably certain confirmed that these will not be affected.

afterglow Fri 29-Oct-10 15:31:33

I had another reply saying that I had raised valid points and she would forward them to the Treasury and get back to me.

Xenia, I would love to see something on a government publication that actually confirms this, a few people have said "There was something on Moneybox..." but I'd really like to see it writing. Anyone have any links?

Chil1234 Fri 29-Oct-10 15:43:49

National Insurance If you check the link you'll find that thre is reference to NI credits being automatically given to people claiming CB for a child under 12. There is also reference to people falling outside the 'automatic' groups making separate claims for NI credits if they are carers. I would read that - in relation to the future changes - that someone not qualifying for CB in the future but who is a full-time parent or carer nevertheless would make a separate claim. HTH

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