Latest news with #ChildBenefit
Daily Mirror
2 hours ago
- Business
- Daily Mirror
HMRC alert as parents have until the end of this month to take action
A specific deadline is coming up for parents to take action - or they could end up losing their Child Benefit payments. This is what you need to know and do Some parents may be in danger of losing their Child Benefit payments next month. Parents who receive the benefit and have a child who turned 16 this year, or is continuing their education or starting approved training, must update their details by August 31. If they fail to do so, HM Revenue and Customs (HMRC) could withdraw the benefit. Parents should get a letter in the post during their child's final year of school. This letter will ask the parent to confirm if the child is staying in education or training - remember, only the person claiming the Child Benefit can provide these details. Who is eligible for Child Benefit To be eligible for child benefit, you need to care for someone under 16, but in some cases, payments can continue until the child turns 20. When a child reaches 16, the claimant must inform the government to extend their benefit. Regarding the August deadline, parents need to tell HMRC that they plan to keep receiving the benefit as long as the child is entering an approved form of education or training. Moreover, this education or training must be at least 12 hours a week to continue to qualify. This can include A level, T level, Scottish Higher, NVQ or similar qualification studies, and traineeships. Home schooling is still valid for Child Benefit as long as it began before the child turned 16 or if the youngster has special needs or disabilities. However, eligibility ceases once the child starts an advanced course like a university degree, BTEC Higher National Certificate, intermediate/advanced apprenticeship, or an employer-funded course. If you're eligible but haven't received a letter from HMRC about the change, don't worry – they've said they'll keep sending them out until the end of July. Updating details with HMRC Parents have the option to extend their Child Benefit claims using the HMRC app or online via The letters also contain a QR code that directs parents to the digital service on HMRC promises that updating your Child Benefit claim is a breeze and takes just "minutes." Last year, 870,000 parents renewed their Child Benefit claims for their teens, with the majority doing it online. Myrtle Lloyd, HMRC's Director General for Customer Services, stated: "Child Benefit is an important boost to families. "As soon as you know what your teenager is planning to do, extend your claim in minutes to guarantee your payments continue in September. Simply go to or the HMRC app to confirm today."
Daily Mirror
4 hours ago
- Business
- Daily Mirror
Ex-DWP worker urges parents to claim Child Benefit even if they are not eligible
Sandra Wrench, who boasts 42 years' experience dealing with State Pensions and benefits, explained that there are three key reasons why parents should claim Child Benefit A former Department for Work and Pensions (DWP) worker with 42 years of experience in State Pensions and benefits is strongly advising all parents to claim Child Benefit. And she said they should do it even if they're not eligible for the payment part from HM Revenue and Customs (HMRC). Sandra Wrench has highlighted three main reasons to claim Child Benefit. These are to increase National Insurance credits, ensure your child gets their National Insurance number, and to boost your State Pension, reports the Daily Record. Speaking to the Daily Record, she said: "With the introduction of the High Income Child Benefit Charge in January 2013, some parents whose earnings exceed the limit of £50-£60,000 have not bothered to submit a claim to Child Benefit after January 2013, as they are not entitled to the payment of Child Benefit. However, from April 2024 the earnings limit increased to £60,000 - £80,000." She went on to say: "If your earnings exceed, it is essential that you still claim Child Benefit, but opt out of the payment. By opting out of the payment of Child Benefit, you do not then have any problem with HMRC chasing you for any overpayments. HMRC not only wants the Child Benefit repaid, but can also fine you." She added: "By opting out of the payment, this saves you having to complete any Tax Self Assessment, as regards child benefit." Parents can opt out of receiving Child Benefit payments by ticking a box in section 4 on the Child Benefit claim form. Key reasons to claim Child Benefit Sandra explained that there are three reasons for claiming Child Benefit, even if you opt out of the payment. National Insurance Credits You are entitled to NI (National Insurance) credits until the child reaches age 12. You get one credit for each week you have claimed child benefit, so 52 credits for a complete tax year gives you a qualifying year towards your State Pension. If you then have another child, your NI credits continue until the second child is 12. If your child was 12 in February, you would get NI Credits until the child was 12 in February. If you had not returned to work when your child was 12, so you had a part qualifying year from April to February, you could make it a qualifying year by paying Voluntary Class 3 contributions. So check your NI record on a regular basis, for any part qualifying years as well - you can do this on here or call HMRC NI helpline on 0300 200 3500. National Insurance Number Sandra explained: 'You need to make a claim to Child Benefit for your child to be automatically issued with a National Insurance Number (NINO) at age 16. If you do not register for Child Benefit, your child will not automatically receive a NINO at age 16, but will have to apply for a NINO." When you register a child with Child Benefit Centre, the child is allocated a NINO at that stage, which is then issued to the child at age 16. Specified Adult Child Care Credits If you return to work when your child is still under 12, and you pay NI contributions because you are working, you do not need the NI Child Benefit Credits. So if a family member, under State Pension Age (SPA), such as a grandmother or grandfather, is looking after the child under 12 while the parent is at work, the parent can pass the NI Child Benefit credits to that other family member. The credits can then be used by this other family member towards their own State Pension, if they have given up work. These NI Credits are then known as Specified Adult Child Care Credits, and you apply for them through HMRC. HMRC will not award the credits to this other family member without first checking that the parent has a qualifying year from working. You can only apply for these credits if the parent has claimed child benefit. More information on Specified Adult Child Care Credits can be found on here. NI Credits for Child Benefit If a claim for Child Benefit is made late, the claim can only be backdated three months, which means that NI Credits for Child Benefit can only be backdated three months as well. Sandra explained how this has resulted in some women losing out on the NI Credits for Child Benefit which would count towards their State Pension. This was reviewed by the UK Government in April 2023, and NI Credits can now be backdated to the birth of the child, so if you have missed out on these NI Credits, you will be able to claim these credits from April 2026. NINOs issued to 16 year olds, and change of address Sandra said: 'Please ensure you notify HMRC/ Child Benefit of any change of address as the NINO will be sent to your 16 year old at your last known address. 'With parents opting out of the payment of Child Benefit due to the High Income CB Charge, it is essential that parents notify the Child Benefit Centre of any change of address, so the NINO for their child is sent to the correct address. If a parent is not in receipt of Child Benefit, it becomes easy for a change of address to be overlooked and not notified to the relevant department. Child Benefit rates 2025/26 The new rates started on April 7: Eldest or only child - £26.05 a week Additional children - £17.25 a week per child Child Benefit is payable until the child is 16, or up to age 20 if the child is staying in approved education or training. Sandra warned: 'Do not confuse the actual payment of Child Benefit with NI Credits for Child Benefit - the payment of Child Benefit you get for the child up to the age of 16, the CB NI Credits are only available until the child reaches the age of 12. Full details on Child Benefit can be found on here. You can also contact the Child Benefit helpline is 0300 200 3100.
Daily Mirror
5 hours ago
- General
- Daily Mirror
State pension error - what it is and how you can check if you're owed money
Thousands are people are feared to have missed out on an old version of National Insurance credits, known as Home Responsibilities Protection (HRP) A major state pension error could mean you're owed tens of thousands of pounds back from the Department for Work and Pensions (DWP). How much state pension you get in later life is dependent on your National Insurance record. For example, with the new state pension, most people need 35 years of National Insurance contributions to get the full amount. If you're out of work, you may be entitled to National Insurance credits and these essentially fill any gaps in your National Insurance record. But thousands are people are feared to have missed out on an old version of National Insurance credits, known as Home Responsibilities Protection (HRP). HRP reduced the number of qualifying years you need on your National Insurance record to claim the state pension. It was replaced by National Insurance credits in 2010. Who is affected by this error? HRP should have been applied automatically to those claiming Child Benefit - but Child Benefit forms submitted before 2000 did not include a National Insurance number. This led to HRP not being correctly applied to National Insurance records. It also impacted those claiming Income Support while they were caring for a person with a disability or long-term illness. If you didn't have the correct level of HRP applied to your National Insurance record, then you may have been underpaid the state pension and are owed money back. You may be affected if you took time off work to look after a child, or a family member with a long-term disability or illness, between 1978 and 2010. It is thought the main group of people who are affected are women in their 60s or 70s. Latest figures from HMRC shows 370,000 women have been contacted regarding potential underpayments, with the Department for Work and Pensions (DWP). Of those who responded to the letters, HMRC identified 5,344 cases of underpayments between January 8 and September 30, 2024, totalling approximately £42million in arrears. How much could I get back? It all depends on how much you were underpaid by, and for how long. The latest figures from the DWP show the average payout per person is £7,859. But for some people, the money back has been in the tens of thousands of pounds. For example, one person called Cilla wrote in to to explain how to reclaimed more than £31,000 in backpay. She said: "I've just received 15yrs' back pay from HMRC of £31,674 for underpayment of my pension. Thank you." How do I know if I've been underpaid? If you are not receiving the full state pension, you should first check your state pension forecast or statement. The full new state pension is worth £230.25 per week, while the old basic state pension is £176.45 per week. If it looks like you are missing gaps, the next step is to check your National Insurance record. The Government has also created an online checker tool on You can make a claim for missing HRP by using the online service on or by filling out this form and posting it back to HMRC. It is believed 43,000 people who are due money back are now deceased, but their families can claim on their behalf.
Daily Mirror
5 hours ago
- General
- Daily Mirror
DWP 'significantly underpaid' pensioners despite them doing 'nothing wrong'
The Department for Work and Pensions (DWP) has admitted a long-standing administrative error has seen thousands of people left significantly underpaid in retirement A longstanding administrative blunder has left thousands of pensioners significantly short-changed in their retirement, despite not being at fault. The issue impacts those who took a break from paid employment between 1978 and 2010 to care for children or disabled family members, potentially costing them a significant chunk of their state pension entitlement. The crux of the problem lies in a failure to accurately record Home Responsibilities Protection (HRP), a now-obsolete government scheme designed to safeguard the pension rights of unpaid carers. HRP was established to ensure that those earning below the National Insurance (NI) threshold due to caregiving responsibilities were not disadvantaged in retirement. Instead of necessitating additional years of NI contributions, HRP functioned by reducing the number of qualifying years required to receive a full basic state pension. For instance, an individual needing 30 qualifying years who spent five years at home caring for children would only need 25 contributing years under the HRP system, reports Birmingham Live. In principle, HRP credits were meant to be automatically applied to anyone claiming Child Benefit, but in many instances, this did not occur. And individuals were never notified of the deficit. The blunder has only emerged in recent years, sparking mounting demands for government intervention and payouts for those affected. Numerous individuals hit by the error are now pensioners surviving on less than their legal entitlement, despite having dedicated years to unpaid caring duties. System breakdowns mean more than 100,000 people now face National Insurance shortfalls that ought not to exist. People currently aged between 41 and 90, but women in their 60s and 70s are within the most affected age group. Parents or carers who have taken time away from paid work to look after their children or a person with a long-term illness or disability at any point between 1978 and 2010. People who have claimed Child Benefit or Income Support for the first time before May 2000. A Labour Party government spokesperson said: "We have identified and are correcting an issue related to the historical recording of Home Responsibilities Protection on the National Insurance records for people who first claimed Child Benefit before May 2000. "Our priority is ensuring everyone receives the financial support to which they are entitled and HMRC has begun writing to those likely affected by this issue. The state pension underpayment rate remains low at 0.4 per cent of expenditure."
The Independent
7 hours ago
- General
- The Independent
Almost 200,000 can claim huge state pension top-up after DWP error
Hundreds of thousands of parents are missing out on a retirement top up worth £5,000 on average as the Department for Work and Pensions (DWP) admits it is struggling to reunite most with the money they are owed. An estimated 194,000 have been affected by the issue, which has seen their state pension being underpaid – or could in the future – due to a record-keeping issue which was no mistake of their own. The error relates to Home Responsibilities Protection (HRP), which was available between 1978 and 2010 for people in receipt of Child Benefit or with caring responsibilities. The scheme reduced the number of qualifying years a claimant needed for a basic state pension in retirement, meaning the amount of years spent in-work and paying national insurance. This was to account for their home-related responsibilities which made them less able to be in employment. Protection through HRP was meant to be applied automatically to those who claimed Child Benefit, with most claimants being mothers. However, the DWP says it noticed in 2021 that this had not happened in hundreds of thousands of cases, leading to underpayments worth £5,000 on average. But in its latest annual report, the department reduced the funds set aside for the repayments from £1.2bn to just £29.8 million – a deduction of over £1bn – conceding that it will not be able to rectify the issue in the near future. The report explains: 'Correcting HRP is inherently challenging. 'The number of people applying to correct their missing HRP has been low. Substantial numbers of people have not responded to government calls for them to apply to add missing HRP and the exercise has resulted in much lower activity levels.' Since autumn 2023, HMRC has issued over 370,000 letters to people who were potentially affected. However, during 2024/25, only 12,379 state pension underpayments were compensated, totalling around £104 million. In the year before this, it was just 419. In response to the low take-up, the DWP has decided to change the compensation scheme from a short-term repayment drive to an ongoing programme. This means those who are affected should face no time limit in claiming what they are owed, while the department saves considerable sums in the short-term. Anyone affected can retrospectively apply for HRP online or by post. For those who require more information, HMRC's national insurance helpline can be reached on 0300 200 3500. Former pensions minister Sir Steve Webb said: 'The DWP's latest report is a hammer blow to over 100,000 mothers who are receiving reduced state pensions because of errors on their National Insurance record. 'The Government's letter-writing campaign has been a dismal failure, and this was entirely predictable given its reliance on a complicated online claims process,' the LCP partner told The Telegraph. 'Although there will still be some ongoing publicity, the figures in the annual report are an admission that the Government itself does not expect these efforts to have much impact.' A government spokesperson said: 'We are determined to help people who have been left out of pocket as a result of historical errors which are no fault of their own. 'That's why we wrote directly to over 370,000 of those who were potentially affected and launched an online tool to help people check if they needed to claim. 'We carried out an extensive campaign to raise awareness of the issue and will continue regular communications to get people to check their National Insurance record.'
