Parents who are not working, or who earn below the National Insurance threshold, can still build qualifying years toward their State Pension by claiming Child Benefit for a child under 12. The National Insurance credits are applied automatically to the claimant's record, and can also be transferred to a spouse, partner, or another family member providing care. This is particularly important for stay-at-home parents and guardians who might otherwise have gaps in their National Insurance history.
At the heart of this is the basic requirement for the full new State Pension. Money Saving Expert explains that the full new State Pension currently stands at £241.30 per week, and most people need at least 35 qualifying National Insurance years to receive it. While working is the most common way to build those years, claiming Child Benefit can be a valuable alternative. As the consumer website states: "Working is one way to get NI years, but claiming Child Benefit can be another. That's because being registered for the benefit can provide NI credits while the child is under 12."
Who Can Use Child Benefit Credits?
Child Benefit credits are designed to support parents and carers. They can go directly to a parent who has stayed at home to look after a child, but they can also be transferred to a relative, such as a grandparent, who is caring for a young family member while the parent is at work. This flexibility means that even if you do not claim Child Benefit payments yourself, you may still be able to secure important National Insurance credits.
The key age is 12. 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 and help ensure you do not have gaps in your National Insurance record if you are not working or do not earn enough to pay National Insurance contributions. With the full State Pension currently worth £241.30 a week, building those 35 qualifying years is extremely valuable.
HMRC Advice: Claim Even If You Do Not Take Payments
HM Revenue and Customs is urging parents to submit a claim even if they decide not to receive Child Benefit money. This is particularly relevant for those who may be affected by the High Income Child Benefit Charge, which can reduce or remove the payment. However, the National Insurance credits are still available, and they can help protect your State Pension entitlement.
An HMRC spokesperson outlined the full benefits: "By claiming Child Benefit, you can get: an allowance paid to you for each child - you'll usually get it every 4 weeks, National Insurance credits which count towards your State Pension, a National Insurance number for your child without them having to apply for one - they'll usually get the number shortly before they turn 16 years old."
HMRC goes on to say: "If you choose not to get Child Benefit payments, you should still make a claim to get the other advantages." This advice is crucial because many parents may not realise that simply registering for Child Benefit, even without receiving a payment, can generate the National Insurance credits needed to top up their pension record.
What If You Do Not Need the Credits?
If you already have enough National Insurance years, or you would prefer to support another family member, Child Benefit credits can be redirected. According to HMRC, your husband, wife or partner can apply to transfer the credits to their own National Insurance record. Alternatively, a different family member who provides care for your child can apply for Specified Adult Childcare credits. This allows relatives, such as grandparents, to boost their State Pension entitlement while helping with childcare.
Money Saving Expert's advice is unequivocal: "If you didn't realise this, it's crucial to make a claim as soon as possible. " The longer you wait, the more difficult it can become to fill historic gaps in your National Insurance record, and those gaps can reduce your eventual State Pension income.
For anyone who has not yet claimed Child Benefit for an eligible child under 12, the message is clear: submit a claim now. Even if you choose not to receive the payment, the National Insurance credits alone make it worthwhile. With the full new State Pension at £241.30 per week, each qualifying year adds meaningful value to your retirement income. The process can be completed through HMRC with no immediate payment required, and the long-term benefits to your pension are considerable.
