Active discussions

Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

Home Responsibilities Protection - what does it count for?

29 replies

Skyler · 20/11/2006 10:39

I am a SAHM to two dd's age 3.5 and 17 mths. I thought that getting Child Benefit in my name meant that my state pension was protected as it meant I was registered for HRP. I have had a letter from HM Revenue and Customs stating that despite HRP I have not been credited with enough NI contributions to make 2004-2005 count towards my state pension. This will mean the same for 2005-2006 too as I am still not working so what does the HRP count for. I am not panicking as they want ?371.80 but I have till 2011 to pay this, but on the other hand I will owe for more years as I hope not to go back to work until my dd's are both at school. Does anyone understand this or can you offer me some advice?? TIA.

OP posts:
Original poster
Skyler · 20/11/2006 10:40

£371.80

OP posts:
edam · 20/11/2006 10:42

Is there a phone number on the letter so you can query this? Sounds wrong - maybe they think you are working. Inland Revenue do make mistakes!

PrettyCandles · 20/11/2006 10:45

IIRC there are two components to the State Pension, one of which depends on your NI contributions. The HRP protects the other component. If you do want to pay some extra in, you're probably better off paying it into a stakeholder fund, rather than in NI contributions - but don't take my word for it, get expert advice.

Original poster
Skyler · 20/11/2006 10:50

I thought it was a bit odd. I thought I would post on here as there are other SAHM's who I would expect to have received a similar letter....

OP posts:
PrettyCandles · 20/11/2006 10:51

Yes, I get this letter every year.

I hand it straight over to my dh. .

Original poster
Skyler · 20/11/2006 19:33

Do you know what her does with it?? Will you bother to top up. I get the feeling I shouldn't but.....
Also bump for the evening crowd....

OP posts:
iota · 20/11/2006 19:36

I haven't worked for 3 yrs and I've never had this letter - you should query it

Original poster
Skyler · 20/11/2006 21:28

Thanks for info Iota. I am going to call tomorrow....I do find it strange.

OP posts:
iota · 22/11/2006 12:54

Skyler - di you get an answer?

I'm staring to wonder now

Bethron · 22/11/2006 12:57

This reply has been deleted

Message withdrawn

Gem13 · 22/11/2006 13:01

I got one of these too! I rang but didn't understand the answer - I'm blaming it on the person explaining though rather than my intelligence. Particularly as I worked this year but not in the other years and they are ok.

The one thing I did understand was that I could look at the website address given somewhere in the letter and see where I stand with HRP, etc. to see whether the payment is worth it.

Needless to say it is in the 'to be sorted pile'!

Original poster
Skyler · 22/11/2006 20:27

Not rung yet.
On list for tomorrow. I will update then. There is something about a white paper that gives the impression I shouldn't bother paying, at least not yet, which is why I haven't worried overly yet. Glad I am not the only one to get this.

OP posts:
iota · 22/11/2006 21:41

You slacker, Skyler

Original poster
Skyler · 22/11/2006 21:48

I know....I forgot to put it on my list, and if isn't on there it doesn't get done. I have lists of lists sigh. Tomorrow though.....

OP posts:
Original poster
Skyler · 23/11/2006 16:57

Right. The nice man on the phone said that HRP doesn't count financially towards the state pension but it does knock off one of the qualifying years that I will need. As a woman I would normally need 39 years but this amount is reduced by each year that I am in receipt of HRP. He checked I was registered for it and said I still have the option of paying it. Yeah right. So we are doing exactly the right thing in totally ignoring these letters .

OP posts:
Original poster
Skyler · 23/11/2006 17:00

I am panicking now that I have told everyone to ignore these letters. Don't. Ring yourselves and check you are happy with what they say.......

Then ignore them.

OP posts:
Mog · 23/11/2006 17:02

Skyler, I had this letter too about 6 months ago and didn't understand it. Do we have to pay it or get a reduced pension? Still not sure from your post below.

iota · 23/11/2006 17:47

Extract from State Pension -Your Guide downloaded from here

I have not always worked and paid National Insurance contributions ? can I still get a basic State Pension?

There are special rules to help protect entitlement to the basic State Pension for people who have not paid, or been treated as having paid, National Insurance contributions throughout their working life. If you have been receiving certain social security benefits, for example Carer?s Allowance (called Invalid Care Allowance before April 2003), Jobseeker?s Allowance or Incapacity Benefit, we will have credited you with National Insurance contributions, unless you are a woman paying married woman?s reduced-rate National Insurance contributions.You may also get credits ifyouare getting Working Tax Credit. We can take account of the years you have spent caring if you have been out of paid work or you have not paid enough National Insurance contributions while: getting Child Benefit for a child under 16;

iota · 23/11/2006 17:48

Responsibilities Protection will not reduce the number of qualifying years below 22 needed by both men and women for a full basic State Pension. Onlythe person who has claimed and been awarded Child Benefit can get Home Responsibilities Protection for caring for a child. See page 36 for details about how you can change the person who has been awarded Child Benefit if you think you need to.You need to remember that the person has to be the one who has been awarded Child Benefit for a full tax year (from 6 April to 5 April) to qualify for Home Responsibilities Protection. So, you should think carefully about when to change the name of the person who has been awarded Child Benefit.You would need to make a new claim for Child Benefit within three months ofthe start of the tax year to allow you to get Home Responsibilities Protection for that tax year. For more information, see State

iota · 23/11/2006 17:48

looking after a person with a long-term illness or disability and you do not get Carer?sAllowance; or

iota · 23/11/2006 17:49

sorry I don't know why this isn't posting correctly - please see teh guide that I linked to

iota · 23/11/2006 17:50

looking after a person with a long-term illness or disability and you do not get Carer?sAllowance; or

iota · 23/11/2006 17:55

essentiallly it says that a woman will need 44 qualifying yrs for state pension at 65 and HRP can reduce the no of years required - but cannot reduce the years below 22.

So to get full pension you need 44 yrs, HRP will be reducing this whilst CB is in payment (16 yrs) , so you need 28 yrs of NI payments as well to get full pension.

which will prbably be worht a couple of chocolate buttons by the time we retire

Disclaimer - I am not qualified to advise anyone on this, that is just what I worked out reading the leaflet

Original poster
Skyler · 25/11/2006 16:02

Sorry for not posting sooner. I have been out on Thurs and then babysitting last night. Iota seems to have covered it. We don't get a reduced pension as I understand it. The only query is that I was told I needed 39 qualifying years as a woman and Iota's info says 44???

OP posts:
iota · 11/12/2006 10:15

oh b*llocks - now I've had one of these letters suggesting that I pay £371.80

Am going to query it and get a pension forecast