Are NI credits paid when you are at home with young children?

[givemewine]

I was led to believe they were, but have recently claimed for incapacity benefit as I am unable to work, my doctor said there would be no problem getting it. However, they have returned the claim saying I have not paid enough NI in the last 3 years (have been at home.) I spoke to someone today in the claims debt who said no, you are not credited at all, you have to pay voluntary contributions, therefore my record shows no payments. Got myself in a pickle here as I thought credits were paid (the bare mimimum) for pension purposes etc, when you were at home with children? I am a bit buggered as I can't get IB yet can't work. Living off my dh, which we have just about managed but will be struggling soon. any advice? Have also applied for DLA but it's very low for living costs.

It is only paid if you are claiming benefits. If you do not work or are self employed you have to make voluntary contributions.

Is there a reason you did not claim 3 years ago - looking at the info on the web it says incapacity should be claimed when SSP has ran out. Would you be able to claim now anyway in terms that you have been a SAHM for 3 years?

NI contributions need to be paid in order to get certain benefits out of the "pot" otherwise there would simply be no money to pay the benefits in the first place.

What about Home Responsibilities Protection that you get if you get Child Benefit and which counts towards pension?

oh no, i thought mine were paid as i claimed the child benefit? someone tell us how to pay, dont you receive letters asking for voluntary contributions if you are below the required amoount, had that when working part time....

I think those only relate to pension and bereavement benefits.

Home Responsibilites Prtection is only paid for the first child

Gosh, I thought having Child Benefit paid to you counted towards your NI contributions as well? That's why dh gets the benefit in his name. What's Home Responsibilities Protection, this means he will still receive a state pension? He hasn't paid NI for years (first out of country, now unable to work).

Purpleturtle is right - and it applies to all your children until they are 6 yrs old.

It counts towards your State Pension but nothing else iirc.

Are you looking for work?

Mercy - I have it in writing that Home Responsibilities Protection only applies to the frst child - not to subsequent ones. I only discovered this when I have to give up work to care for my GS.

Joash, are you counted as a foster carer? Are there different rules which may apply?

I have also have a letter confirming my HRP for my 2nd child who is now nearly 4!!

It's confusing I agree.

NO - we have a residence order and although we can claim child benefit, etc for him - the Home Responsibilities protection rules only apply to the first child. The letter clearly states that the wording whcih used to appear in the back of child benefit books, etc is ambiguous. The HRPO only applies to number 1.

Eeek, that's not good! I'll see if I can find my letter (fat chance now).

It does seem confusing. I will look more into my paperwork, and ring NI, not that I'm confident of getting any kind of understandable reply! I didn't know about home responsibilities so will also look into that more. Mercy, no I'm not looking for work as I am unfit for it unfortunately.

This is copied and pasted from the Pension Service's website:

Home Responsibilities Protection

Can I get it?

Do you get:

• Child Benefit in your name for a child under the age of 16, and you have told us your National Insurance number? Find out more about Child Benefit on the HM Revenue & Customs website
• Income Support and do not need to register for work, because you are caring for someone who is sick or disabled? Find out more about Income Support on the Jobcentre Plus website

If you receive one of the above, you should get HRP automatically.

Yes - but it only applies to the first child.

its confusing system i agree

mine are paid, i pay them (sahm now) as i was self employed then the standing order was set up i let in run incase it helped later on...
probably not the case but dont have much else!

dont; see where Home Responsibilities Protection is only paid for 1st child - it mentions child up to age of 16 so i would assume you get credits for every year you claim CB for any child.
However it does only protect your pension it is not NI payments as such

givemewine - do you not have to be looking/registered for work in order to get benefit which assess you as not able/fit to do so (does that make sense?)

Home Responsibilities Protection is only paid for 19 yeats regardless of how many children you have I found this out when I recieved a letter a few years ago stating that unless I now make volentary contobutions my pension will not be covered even though I had a two year old at the time

more info on HRP and voluntary contributions here

This is important:

"I was not working because I was looking after a child or a sick or a disabled person?

If you reach State Pension age before 06/04/2010 and you have cared for a child or a sick or a disabled person or you were a registered Foster Carer during the year(s) covered by the letter, you may be entitled to Home Responsibilities Protection (HRP). HRP can reduce the number of qualifying years you need for a full basic State Pension by up to 50%. This means that you probably will not need to pay voluntary National Insurance contributions for years covered by HRP.

If you reach State Pension age on or after 06/04/2010, HRP will be replaced by a new system of weekly contribution credits from April 2010. Further information on the changes to HRP can be found on The Pension Service website under the ?Parents and carers? section.

Any periods of HRP recorded on your NI account before 6 April 2010 for years that are not qualifying will be converted (whole tax years only) into Class 3 credits to make the year(s) qualifying (maximum of 22 years). The date of this conversion exercise has yet to be determined. As a result of this a decision has been made not to issue a letter about any shortfall to customers reaching state pension age on or after 6 April 2010 who have a period of HRP on their record as we cannot estimate their ?qualifying years? accurately in advance of HRP conversion. If you should have received a shortfall letter for the 2005/06 year we will inform you of your position at a later date."

maggymay - thi info I just posted says HRP for 22 years - I think the system is so complicated that there is a lot of confusion, especially with the changes coming up in 2010

IOTA the maximum 22 years only applies if you were loking after a disabled person - and then only if you have not already had HRP for your first child (unless the disabled person is your first child).
Believe me, I went thoroughly into HRP when I had to give up a bloody good career to start the childcare thing all over again.

more info on careers and pensions here

carers not careers

Joash - that's interesting to know - it is not at all clear on the govt website