AIBU to be hacked off with 2 government departments (Child Benefit and National Insurance) not commnicating? This could affect pensions for thousands of women.

[messiejessie]

I have discovered I am missing NI credits for several years when I was a SAHM with 4 children under 12. I have until 5 April 25 to pay to get these years totalling £4343.30, when really I should get them for free. Child Benefit say because I did not claim for CB , it is too late to retrospectively claim, which would give me free credits towards my pension. The reason I didn't claim is because my husband was in the High Income bracket so I would not want to receive the benefit. When the children were born in the Uk I did initially receive CB but then we moved to a EU country for 3 years, during which time the High Income Charge came in. When we came back it was not made clear that you needed to still be registered with Child Benefit in order to receive the NI pension credit. The communication with the public from HM Revenue is lacking, particularly after the change of rules, when we were told to 'choose not to receive these benefits'. It was not made clear at the time that choosing not to sign up at all would affect one's pension.
This issue of 2 government departments being unable to share information and communicate with each other is frustrating will be affecting the pensions of thousands of women or bullying them into paying up, which is clearly unfair. During this time my husband made full NI payments.
Martin Lewis did an expose of this which forced the government to extend the deadline last year because no-one could get though on the phone. Martin Lewis said that women doing childcare for under 12s are entitled to free credits but it seems Child Benefit are blocking this for those who had not applied. Jeremy Hunt said that women should not be unfairly penalised, but it seems the rules have not changed. Has anyone had any joy with these departments? I have spent hours on the phone on hold and spoken to each department, both of which tell me to call the other. I would welcome hearing from others affected. It is an issue of national importance for women and the deadline to sort these credits out is 5 April 25.

Lots of ineligible women claimed, and had their partner pay it back via taxation, op. I did it myself.
That’s always been an option.

I can only speak for myself really (DH was SAHD) but I found it all really clear at the time, unlike most of my other dealings with those departments.

I am genuinely sorry for anyone who has found themselves in this position though.

How can they possibly do that? It would rely on a lot more information harvesting which lots of people are against just catch the few that fall through this net.

Sometimes you just have to accept that you are responsible for your own financial research.

It was made very clear, over and over. But the government and also by every money advice and benefit advice site and calculator. If you didn’t read it then that’s on you. The information was clearly publicised at the time and still is now. It isn’t the government’s fault that you didn’t know.

They mess up a lot and screw people over a lot, but not about this issue. It was clearly publicised that you still had to claim to get the pension credits, but could opt out of receiving the payment or pay it back through a self assessment.

I thought you claim but not receive payment so that you still got your NI contributions.

And Martin Lewis doing an “expose” pointing out that a lot of women didn’t understand and therefore didn’t claim is not the same as saying the government hid the information.

It was clear. But unfortunately the average reading age in this country is that of a 10 year old, so a lot of people just didn’t understand. I do feel bad for them but you’re an adult and it just isn’t feasible to expect someone else to hold your hand. How many ways can they say “Even if you do not want the payment, you must still register to keep getting pension credits.”

Sorry you’re in this situation.

It was very clear. My husband is a higher rate tax payer so I opted out of payments and continued to acrue my NI credits. Do you have time to gain the years you need?

Yes that’s right, you could claim it at zero rate. Or just claim at the full rate and let your partner pay it back.

It was made clear hence my dh going through the ball ache of doing tax returns. It’s shit though because a lot of men wouldn’t bother.

I don't live in the UK and have never had being a SAHM on my radar but even I was aware of this. I don't think you can blame the government - how did you think the government would know that you were a SAHM rather than simply not working?

I think you have been under a rock. It's been so clear right from the beginning the CB gives the parents who claims their NI contributions for pensions.
When higher tax payer rule was brought in again it was huge news

this

We didn't claim because DH was over the income threshold and I worked FT. But I was very aware we had the option of claiming and then paying back.

People need to take responsibility for understanding their finances, including benefits and pensions

I don't get your point, the 2 departments do communicate with each other, that's how they know to credit your NI if you care for children. The issue is that you haven't told anyone you had children under 12 in your care, how were they supposed to know? You could be living abroad, separated from DH and left the kids behind, whatever.

I’m trying to remember how I learned that applying for child benefit gave you NI credits. It may have been on this website, and it was 10 years ago. When are you referring to op? There is not enough appreciation of the huge current pace of change and the impact over one person’s lifetime.

And the NI deadline was extended to April 2025 in June 2023. I can see articles highlighting this change going back to 2018 (maybe earlier). There comes a stage where people have to take responsibility.

I appreciate it's shit for you OP but this isn't the government's fault. How far back do you need to go? You can go back six years even after April 2025.

How were you aware of the High Income Charge and knew not to restart your claim after returning to the UK?

I'm with the majority that it is very clear, especially as you knew about the HIC.

I did think that they were going to allow people in your situation to claim, eventually, but the legislation hasn't come in yet. What is your April 25 deadline - for the option of paying the gaps?

It was really clear at the time, it was very well documented in many places. I knew and it doesn't even apply to me. We are all responsible for understanding our finances ourselves. Perhaps your higher earning husband could pay the shortfall for you? You were bringing up his children so it's his cost too.

And just because this seems conveniently timed with the latest WASPI women news, the issue with that group was that there was a period where the government knew that there was a group of women who hadn't understood the change, conducted a review which said that targeted communications were needed, and then didn't make any changes to the communications for two years. It's that additional 2 year delay that the ombudsman had an issue with. (Note this isn't a comment on whether the government should pay, just flagging that this seems inherently different).

When we came back it was not made clear that you needed to still be registered with Child Benefit in order to receive the NI pension credit. The communication with the public from HM Revenue is lacking, particularly after the change of rules, when we were told to 'choose not to receive these benefits'. It was not made clear at the time that choosing not to sign up at all would affect one's pension.

It was clear, otherwise why would women continue to claim the benefit if there was no 'benefit' to claiming it. They have always been clear about it. It's. Its no one's fault but yours for not checking.

I don’t quite understand your post OP.

If you claim child benefit for a child under the age of 12 you get your NI credits towards state pension. You can’t backdate a child benefit claim. You didn’t claim for a couple of years and therefore didn’t get the NI credits.

What more is there to ring them up about or for the departments to discuss with each other? It sounds unfortunate but quite clear cut to me unless I’ve misunderstood.

I think there was plenty of publicity about this from various sources. But then I'd say the same thing about the post Brexit passport debacle, but it didn't stop lots of people turning up at airports with 'out of date' passports that weren't actually past their expiry date.

This is on you OP sorry. This was never a government secret, you could always claim the credits without claiming the amount, and it’s always been well publicised if you have a look- which anyone should be if it impacts them.

I completely and utterly disagree with op, it is made VERY very clear. The op just didn't check.

I have no doubt that financial literacy rates are even lower.
There is an education gap in this sector that needs addressing, economic and financial language is weponised by gatekeepers and there lacks an appropriate transparency to ALL people's.

I don’t think it matters that you have a few years missing does it? You have to have a certain number of years (35?) in order to qualify for your state pension. Assuming you’d started working by the time you were say, 25, you should still manage to get 35 years in before you’re 68 even with a few years gap? I wouldn’t rush to pay the missing years!

Agree with all PP that this is well publicised, especially if you knew about the HIC. All the documentation about that highlights the benefits of claiming but not actually getting the money, or claiming and paying it back.