HMRC is urging state pensioners to protect their future DWP payments by claiming Child Benefit. Under current rules from HMRC and the Labour government, you qualify for Child Benefit if you are responsible for a child under 16, or under 20 if they are in approved education or training. Only one person can claim per child.
National Insurance Credits and State Pension
By claiming Child Benefit, you receive an allowance paid every four weeks. Crucially, you also get National Insurance credits that count towards your State Pension. HMRC states that claiming Child Benefit provides a National Insurance number for your child automatically, usually issued shortly before they turn 16.
If you choose not to receive Child Benefit payments, you should still file a claim to access the other advantages. HMRC explains: 'You will get National Insurance credits automatically if you claim Child Benefit and your child is under 12. These credits count towards your State Pension, so you avoid gaps in your National Insurance record if you are not working or do not earn enough to pay contributions.'
Transferring Credits
If you do not need the National Insurance credits, your family may still benefit. Your spouse or partner can apply to transfer the credits, or a different family member caring for your child can apply for Specified Adult Childcare credits.
From April, the benefit has increased: £27.05 per week for the first or eldest child, and £17.90 for each additional child. This represents an annual rise of £52 and £33.80 respectively. Monthly, this amounts to £108 for the eldest child, and yearly totals £1,406.60 for the eldest or only child, plus £930.80 for each extra child.
