Am I slow on the uptake re: Child Benefit and Pensions?

[TootsieFrootsie]

I think I have been a bit stupid. When it was announced that Child Benefit would be means-tested I realised that as a SAHM with H earning more than the minimum to receive full child benefit, I should probably opt out. Which I did.

But now because I've opted out of receiving a benefit, my time taken out of work to look after my kids will not count towards a basic pension.

Is this correct?

Yes, that's correct.

However you will only have missed out on a few months since you opted out. Out back in and then have DH declare it on his tax return and pay it back. It's a clunky system but that way you'll get your NI contribution credit and your full state pension :)

Yes, and I think it is shameful that this aspect (although known and discussed eg on threads here) did not receive the publicity it should.

I was told the opposite. I have a letter from the child benefit office saying that national insurance contributions are still protected, although I'm not receiving payments.

They were keen to stress that if II had anymore children, to make sure I renew the claim so the cover will still continue for that child iyswim.

You don't have to opt out, you can opt in and choose not to receive the payments. That way, you get your NI cover, and your DH doesn't need to do a tax return. This is what we've done.

Okay. I thought it was a done deal. Marilyn, I will check this out too. Arion, if I can I will opt in and not receive the payments. Seems simpler. If not I will wind-up my DH till he sorts out his tax return. Could take some time.

Yes, Meditrina, all I got from the media was how shameful it was that people earning more than £50,000? were getting child benefit at all.

Many thanks.

you can claim child benefit but opt out of the payment and that protects your NI cover.

from hmrc:

f you decide to stop your Child Benefit payments it won't affect your entitlement to Child Benefit. As long as you, or your partner, are entitled to receive it you should still fill in a Child Benefit claim form for any new children. This is because entitlement to Child Benefit:

*can help you qualify for National Insurance credits that can protect your entitlement to State Pension
*can help protect your entitlement to other benefits such as Guardian's Allowance
*ensures your child is automatically issued with a National Insurance number before their 16th birthday

You can restart your Child Benefit payments again at any time if you wish.
You will still need to report any changes in circumstances that could affect your entitlement to Child Benefit, or if you want to stop your payments for any other reason.