Parents are being urged not to overlook an important HMRC rule that could help protect their future State Pension – even if they earn too much to keep their Child Benefit payments.
Tax experts say many families mistakenly believe there is no point claiming Child Benefit if they are affected by the High Income Child Benefit Charge. But failing to make a claim could mean missing out on valuable National Insurance credits that count towards the State Pension.
The warning comes as many parents continue to take career breaks or reduce their working hours to care for young children, potentially leaving gaps in their National Insurance record.
Why Child Benefit matters for your State Pension
While Child Benefit is best known for helping families with the cost of raising children, claiming it can also automatically secure National Insurance credits for parents looking after a child under the age of 12.
These credits help build the qualifying years needed for the State Pension and can be particularly valuable for parents who are not working, work part-time or earn too little to pay National Insurance contributions.
Andy Wood, tax expert at Tax Barrister UK, said many parents do not realise the long-term value of making a claim.
He said: "Many people think of Child Benefit purely as financial support for raising children, but one of its most valuable features is often overlooked.
"A Child Benefit claim can also protect your future State Pension by securing National Insurance credits during periods when you're not working or your earnings are too low to pay National Insurance."
How to claim Child Benefit
According to the Government, parents can claim Child Benefit 48 hours after registering the birth of their child, or when a child comes to live with them.
Claims can be backdated by up to three months, meaning families should not delay if they are eligible.
The easiest way to apply is online, although claims can also be made by phone or post.
To apply, you'll usually need:
- Your child's birth or adoption certificate (if you have it)
- Your National Insurance number
- Your bank or building society account details
- Your partner's National Insurance number, if applicable
Parents can still submit a claim if they do not yet have a birth or adoption certificate, although processing may take longer and HMRC may ask for the document later.
Make sure the right parent claims
Experts are also reminding families to think carefully about who submits the Child Benefit claim.
Only one person can claim Child Benefit for each child, and the person who claims receives the National Insurance credits that count towards their State Pension.
That means if one parent has taken time away from work or reduced their hours to care for children, it may make financial sense for them to be the claimant.
Andy Wood said: "It's important that the right person claims Child Benefit.
"The National Insurance credits are awarded to the claimant, so where one parent has taken time out of work or reduced their hours, making sure they're the person receiving the credits can make a meaningful difference to their future pension entitlement."
The Government also says couples can choose to claim for different children if they have more than one child.
The full details are explained on gov.uk here.
Career breaks can affect retirement income
Wood said parents who take time away from work to care for children should ensure they continue receiving National Insurance credits.
He explained: "Your State Pension is built over decades, so gaps in your National Insurance record can have a lasting impact.
"Parents who step away from work to care for young children should ensure they're receiving the National Insurance credits they're entitled to, as these could help maximise their State Pension later in life."
Under current rules, you generally need at least 10 qualifying years of National Insurance contributions or credits to receive any new State Pension, while around 35 qualifying years are usually needed to qualify for the full amount.
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Higher earners should still think twice
The advice also applies to higher-income households.
Many parents choose not to claim Child Benefit because they expect to repay it through the High Income Child Benefit Charge.
However, experts say there is often still a good reason to submit a claim.
Wood said: "A common misconception is that higher earners shouldn't claim Child Benefit because they'll simply have to repay it through the High Income Child Benefit Charge.
"In many cases, it's still worth making the claim and opting out of the payments, as doing so preserves the valuable National Insurance credits without creating a tax liability."
