Parents or carers claiming Child Benefit from HM Revenue and Customs (HMRC) can automatically boost their future State Pension payments through National Insurance credits. This benefit, often overlooked, helps protect retirement income for those raising children under 16, or under 20 if in approved education or training, according to reports from Express.co.uk.
Child Benefit Rates and Annual Totals
Following a 3.8% uprating in April, Child Benefit now stands at £27.05 per week for the first or eldest child, and £17.90 for each additional child. Over a full year, this amounts to £1,406.60 for the eldest or only child, and an extra £930.80 per additional child, with no cap on the number of children claimed for.
National Insurance Credits and State Pension
By claiming Child Benefit, recipients automatically receive National Insurance credits from HMRC. These credits count towards the State Pension, helping to fill gaps in the National Insurance record caused by maternity leave, low earnings, or periods not working. This can ultimately increase the amount of State Pension received upon reaching State Pension age.
HMRC stated: "If you choose not to get Child Benefit payments, you should still make a claim to get the other advantages. You'll get National Insurance credits automatically if you claim Child Benefit and your child is under 12."
Qualifying Years for Full State Pension
To receive any new State Pension, a minimum of 10 qualifying years on the National Insurance record is required. Generally, 35 qualifying years are needed for the full rate, currently £241.30 per week. However, for those with a National Insurance record starting before April 2016 who were contracted out, more than 35 years may be necessary, as explained by the Department for Work and Pensions: "If you were contracted out, you or your employer paid more into your workplace or private pension and less into your State Pension."
How to Claim and Backdating
Child Benefit can be claimed 48 hours after registering a child's birth or when a child comes to live with you. Claims can be backdated up to three months from the date of claim. Only one person can receive Child Benefit per child, so parents or carers must decide who claims it. The claimant receives the National Insurance credits.
High Income Child Benefit Charge
If the claimant or their partner has an individual income between £60,000 and £80,000, the higher earner may face the High Income Child Benefit Charge (HICBC). For the 2026/27 tax year, 1% of Child Benefit must be repaid for every £200 earned above £60,000. At £80,000 or more, all Child Benefit must be repaid. Options include receiving payments and paying the tax via PAYE or Self Assessment, or opting out of payments to avoid the charge while still receiving National Insurance credits and a National Insurance number for the child.
