Source · Select Committees · Work and Pensions Committee
Recommendation 17
17
Acknowledged
Almost half a million people have stopped claiming Child Benefit since 2013 to avoid the...
Recommendation
Almost half a million people have stopped claiming Child Benefit since 2013 to avoid the High Income Child Benefit charge. We recommend that DWP explain what arrangements it intends to put in place to ensure this does not have a detrimental impact on their State Pension entitlement. (Paragraph 117) 58 Protecting pension savers – five years on from the pension freedomss Saving for later life Guidance
Government Response Summary
The government has encouraged families who are responsible for a child under 12 to claim Child Benefit regardless of household income to help them build qualifying years of National Insurance for future State Pension entitlement and will keep this under review. Information on what parents should do to protect their future State Pension entitlement is clearly provided on the Child Benefit claim form.
Government Response
Acknowledged
HM Government
Acknowledged
The government has encouraged families who are responsible for a child under 12 to claim Child Benefit regardless of household income to help them build qualifying years of National Insurance for future State Pension entitlement. We will keep this under review. Information on what parents should do to protect their future State Pension entitlement is clearly provided on the Child Benefit claim form. Not all of the half million people mentioned at the Committee hearing will fail to receive a qualifying year of National Insurance as they may gain one through employment, self-employment or other qualifying NI credits. In addition, many individuals build up sufficient qualifying years for the full rate of the new State Pension, over a possible working life of over 45 years, even if there are some gaps in their National Insurance record. Most individuals under the age of 50 will get the full rate of the new State Pension with 35 qualifying years.