Facts they don't tell you/Child Benefit and State pension entitlement

[elizannie]

Receipt of child benefit for non-wage earning mums counts towards State Pension entitlement. This has not been made clear [like many other things about the proposed cuts in child benefit entitlement] - so if a woman loses her entitlement to CB this could affect - albiet some years in the future - her 'credits' toward her State Pension. For more about this if you think this may affect you - and for other facts - please go to my blog at: www.rephidimstreet.blogspot.com/
rather than me blocking up this thread with more and more facts!

Thanks but we already have about 6 threads on that!

It is perfectly clear about HRP and has been for years. The change to HRP that was introduced last April (limiting the HRP benefit to those with children under 12) has also been flagged on here.

Yes they do tell you.

It's not for mothers but for the person in receipt of CB, mostly women but may be a man of course

HRP does not offer credits but reduces the number of working years used to calculate entitement to state pension

so say you need 30 years of full NI payments to get 100 per cent state pension, and you receive HRP for 12 years; you will then require 18 years of full NI contributions to be entitled to 100 per cent*

*The figures are for illustration purposes only

As I understand it the plan with CB for HR taxpayers is that the CB will still be paid but will be reclaimed from the paypacket of the HR taxpayer. At least that's what's been said in relation to the change when the NI issue was brought up.

BALD - does that mean 18 years of full time work? Does part time count at all?

What do you get if you don't full pension?

You need to check how many years you already have. I am surprised that I have almost 30 already, and I have only worked for 16 years, plus 2 years pre degree, and had I think 4.5 years using the HRP. That makes 22.5, and my last forecast said that for the year ending April 08 I had 26 years, so another 2 takes me to 28 and I will get more until 2013, so will make my 30. I think they said they added in time when I was a student as well, but can't see why.

There is an enormously complicated calculation made for each tax year, so £x amount of NI paid per annum = the level needed for that year

Yes part time work might qualify, depending on earnings. A high earner might achieve the level of £x NI needed in 4 months (but must continue to carry on having NI deducted even though no extra benefit conferred that tax year) and a lower earner might take 10 months to achieve

You can obtain a Pension Forecast, info here