Martin Lewis' Money Saving Expert Issues Urgent Alert for State Pension-Age Individuals
Martin Lewis' Money Saving Expert (MSE) has released a critical warning targeting individuals who are "at or near" the Department for Work and Pensions (DWP) state pension age. The prominent financial advice team, led by the BBC and ITV personality, posted the alert on its official website to highlight a pressing issue affecting many Britons.
Immediate Action Required on Child Benefit Credits
MSE explicitly advises: "At or near State Pension age? Check NOW if you're due Child Benefit credits that could boost what you get – as HMRC tool delayed to 2027." This call to action stems from a significant delay in the launch of a government tool designed to help claim backdated National Insurance credits.
Child Benefit is administered by HMRC and provides financial support to those responsible for children under 16, or under 20 if in approved education or training. The benefit amounts to £27.50 weekly for the first child and £17.90 for each additional child. However, a High Income Child Benefit Charge applies if you or your partner earn over £60,000, requiring repayment of a portion of the benefit.
Understanding the High Income Child Benefit Charge
For incomes exceeding £60,000, the charge reclaims 1% of Child Benefit for every £200 earned above that threshold. Once earnings surpass £80,000, the entire benefit must be repaid. Prior to 2024, these thresholds were lower, starting at £50,000 for partial loss and £60,000 for full loss of entitlement.
MSE explains that to avoid this charge, some high earners opt not to claim Child Benefit at all. But this decision carries a hidden cost: missing out on National Insurance credits, which can create gaps in their NI record if they took time off work to care for children.
Impact on National Insurance Records and Pension Entitlements
This issue particularly affects individuals who provided care for young family members, such as grandparents looking after grandchildren while parents worked, often referred to as Grandparent's credits. These credits are crucial for building a complete NI record, which directly influences state pension eligibility and amounts.
In response, the Government announced in April 2023 a new system to allow affected parents and carers to claim backdated NI credits at no cost. Originally scheduled for launch in April 2026, this tool has now been postponed to April 2027, extending the period of potential financial vulnerability.
MSE's Recommendation: Don't Wait, Complain Now
Given this delay, MSE strongly urges those impacted not to hesitate. The team advises immediate action to check eligibility and file complaints if necessary, to secure owed credits and protect future pension benefits. Proactive steps are essential to mitigate the risks posed by the postponed HMRC tool.
