If you reach State Pension age on or after 6 April 2016, you’ll get the new State Pension.
You need to pay 35 years of National Insurance contributions (NICs) or receive NI credits to obtain the full amount. If you have less than 10 years of NICs or credits you won’t quality for any State Pension.
Child Benefit is a regular payment from the government to help with the cost of raising a child.
You can claim Child Benefit for each child you’re responsible for if they’re:
If you’re a parent or carer of a child and claim child benefit, you’ll be credited with NICs until your youngest child is 12, even if you’re not earning.
The credits are automatically added to your National Insurance account when you claim Child Benefit – so you don’t need to do anything other than claim Child Benefit.
Credits missing from your National Insurance record
If you’re (or were) registered for Child Benefit for the child being cared for in the past, but the automatic credits are missing from your National Insurance account you can apply for the NI Class 3 NI credits by completing form CF411A.
Go to the GOV.UK website at the following address for this form.
Transferring National Insurance Credits
If you’re working and getting Child Benefit – you might be building up more National Insurance credits than you need.
You can transfer them to your partner if they’re not working or are on a low income and not paying National Insurance contributions.
You can make transfer claims on an annual basis after the end of each tax year.
You can transfer Class 3 National Insurance credits using form CF411A.
The ‘High Income Child Benefit Charge’
Payments are tax-free if neither parent earns more than £50,000 a year. However, you earn more than this, you’ll have to pay back some of the money in the form of extra Income Tax. This is called the ‘High Income Child Benefit Charge’ which was introduced in 2013.
If either parent earns £60,000 or more a tax charge equal to the child benefit will apply.
Some higher income couples have decided not to claim child benefit, but If either parent earns over £60,000, you can still make a child benefit claim and opt not to receive the Chid Benefit payments (and avoid the tax charge) but still get the NI credits.