Latest news with #SandraWrench
Daily Record
27-05-2025
- Business
- Daily Record
Triple Lock creating two-tier State Pension for older people warns former DWP employee
The latest figures from the Department for Work and Pensions (DWP) show there are now 13 million people of State Pension age across Great Britain, including 1.1m in Scotland. Of that total, 34 per cent are in receipt of the New State Pension while 66 per cent receive the Basic/Old State Pension. Under the Triple Lock guarantee, the New and Basic State Pensions increase each year in-line with whichever is the highest between the average annual earnings growth from May to July, Consumer Price Index (CPI) inflation rate in the year to September, or 2.5 per cent. However, additional elements of the State Pension, including deferred amounts, rise by the September CPI rate, something a former DWP employee warns is creating a 'two-tier uprating system for pensioners'. Sandra Wrench has 42 years experience in dealing with State Pensions and benefits delivered by the DWP and previously wrote to DWP Ministers in 2023 expressing her concerns. Mrs Wrench told the Daily Record how some pensioners may not be aware that this year's Triple Lock uprating of 4.1 per cent only applies to the New and Basic State Pension payment rates; additional components have risen by 1.7 per cent - the September CPI inflation rate. This is also the uprating applied to Universal Credit and other benefits delivered by the DWP. It's important to highlight that devolved benefits in Scotland, including Adult and Child Disability Payment, Pension Age Disability Payment, Carer Support Payment and Pension Age Winter Heating Payment, also increased by 1.7 per cent this month. The ex-DWP employee said: 'The Triple Lock guarantee only covers the BASIC State Pension and not all components, the other components being Additional Pension (the scheme which existed between 1978-April 5, 2016 and which you could contract out of), Graduated Pension (1961-1975), increments for deferring your State Pension, and the protected pension which is any amount in excess of the 100% rate of the new 100% State Pension which you might be entitled to at April 6, 2016. 'With the calculation of the New State Pension at April 6, 2016, in most cases, all the components of the old State Pension have been added together to give a basic State Pension, and where applicable a protected pension, which is the excess above the 100% rate of the New State Pension. 'So by adding all the components together this has brought components such as additional pension, within the scope of the Triple Lock, which was 4.1% this April 2025. Under the old scheme, additional pension would have just been increased by the CPI rate of 1.7% for this April 2025.' Mrs Wrench warned: 'With The Triple Lock relating to the basic rates of the State Pension only, this has created a two-tier uprating system for those who reached State Pension Age before April 2016 where the 100% rate of the Old/Basic State Pension is currently £176.45 a week and those who reached retirement age after April 2016 where the 100% rate of the New State Pension is higher at £230.25.' She shared an example to help illustrate the difference: A person who was State Pension Age before April 2016, has a weekly amount of State Pension as £240.00, consisting of 100% Old/Basic State Pension of £176.45, additional pension of £59.75 and graduated pension of £3.80. Compare this with a person who reached State Pension Age after April 2016, who also has a weekly pension of £240.00, but this consists of 100% New State Pension of £230.25 and a protected payment of £9.75. In April 2026, the person who reached State Pension Age before April 2016, will only have £176.45 increased by the Triple Lock, compared with a person who reached State Pension Age after April 2016, who will have a higher amount of £230.25 increased by the Triple Lock. Mrs Wrench continued: 'You can see how a person who reached State Pension Age before April 2016 has a lower percentage of their State Pension uprated by the Triple Lock compared with those who reached State Pension Age after April 2016. 'Because of this difference in basic pension and the Triple lock only relating to the basic rate of the State Pension, this will inevitably lead to those who reached State Pension Age before April 2016 falling further behind with every annual uprating.' The insider explained that when the Triple Lock was introduced in 2011, there was only one State Pension (Old/Basic), but the introduction of the New State Pension in April 2016, calls into question whether it should also be uprated under the Triple Lock. However, she warns that any future adjustment to the Triple Lock 'will particularly affect poorer pensioners, such as those who do not have other sources of income, those who are disabled and not able to work full time, and women with caring responsibilities who have had to work part time and who may not have had the opportunity to build up any private or work pension'. Mrs Wrench added: 'The DWP have confirmed they cannot means-test the State Pension, so possibly the only way that the increased costs for State Pension can be addressed is through some adjustment to the Triple Lock, and to reassess the annual uprating of the State Pension. Mrs Wrench shared two examples to help highlight the uprating impact: From April 6, 2016, a woman, who is State Pension Age after April 2016. has a Basic State Pension of £63.63, and Additional Pension of £24.82. These two components were added together on April 6, 2016 to give her a starting amount of £88.45 for the New State Pension, and this £88.45 is now all Basic State Pension under the new scheme. If you were State Pension Age before April 2016, under the old scheme the basic State Pension of £63.63 would have increased by the Triple Lock, and the additional pension of £24.82 increased by the lower CPI rate , but by adding the two together for the New State Pension from April 6, 2016, this means that all this amount is basic state Pension and increases by the Triple Lock. So those who are State Pension Age after April 2016 are at an advantage compared to those who reached retirement age before April 2016, as regards the Triple Lock increase. A person who reached State Pension Age after April 6, 2016 has the full 100% rate of the basic State Pension which was then £119.30 (under the old scheme) and Additional Pension of £75.00. Basic £119.30 plus AP £75.00 = £194.30 at April 6, 2016, which was converted into the 100% rate of the New State Pension of £155.65 (the 100% rate at April 6, 2016) plus a protected payment of £38.65. Basic State Pension increases by the Triple Lock, but protected payment increases by CPI rate, so some of the additional pension has been converted into Basic State Pension and brought within the scope of The Triple Lock. State Pension payments 2025/26 The DWP has published the full list of State Pension and benefit uprated payments on here, which also includes additional elements such as the deferred rates, which have risen by 1.7 per cent (September Consumer Price Index inflation rate). Full New State Pension Weekly payment: £230.25 Fortnightly payment: £460.50 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 Fortnightly payment: £352.90 Four-weekly payment: £705.80 Annual amount: £9,175 Future State Pension increases The Labour Government has pledged to honour the Triple Lock or the duration of its term and the latest predictions show the following projected annual increases: 2025/26 - 4.1%, the forecast was 4% 2026/27 - 2.5% 2027/28 - 2.5% 2028/29 - 2.5% 2029/30 - 2.5%
North Wales Live
05-05-2025
- Business
- North Wales Live
Parents urged to claim Child Benefit regardless of high earnings
A former Department for Work and Pensions (DWP) staffer with over four decades of experience in State Pensions and benefits is strongly advising all parents to claim Child Benefit, regardless of their eligibility for the payment portion from HM Revenue and Customs (HMRC). Sandra Wrench has outlined three main reasons to claim Child Benefit: it helps with National Insurance credits, ensures your child gets a National Insurance number, and can increase your State Pension. Speaking to the Daily Record, the ex-DWP worker 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 added: "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. "By opting out of the payment, this saves you having to complete any Tax Self Assessment, as regards child benefit.", reports the Daily Record. To opt out of the payment of child benefit, there is a box on the Child benefit claim form in section 4 which you can tick. 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
05-05-2025
- Business
- Daily Mirror
HMRC benefit claim all parents urged to make as ex-DWP worker issues advice
Parents have been told to claim Child Benefit - even if they're not eligible to receive it - as there are a number of benefits that come with it A former Department for Work and Pensions (DWP) employee, with 42 years of experience in dealing with State Pensions and benefits, has issued a warning to all parents. She emphasises the importance of claiming Child Benefit for everyone with a child, even if you're not eligible for the cash part from HM Revenue and Customs (HMRC). Sandra Wrench, who spent her career navigating the intricacies of pensions and benefits, has outlined three reasons why parents should claim Child Benefit. These include securing National Insurance credits, ensuring your child gets their National Insurance number and enhancing your own State Pension. In an interview with the Daily Record, the former DWP specialist 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 further advised: "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 explained that by opting out of the payment, this saves you having to complete any Tax Self Assessment regarding child benefit. For those who want to avoid the payment but still enjoy the associated benefits, Sandra highlights a straightforward option on the Child Benefit claim form – a box in section 4 that can be ticked to opt out, as reported by the Daily Record. Sandra listed three main reasons for claiming Child Benefit, even if you decide to opt out of the payment. National Insurance Credits Firstly, National Insurance Credits. You're entitled to these credits until your child turns 12. For each week you claim child benefit, you receive one credit. So, a full tax year of claiming equals 52 credits, which goes towards your State Pension. National Insurance Number Sandra said: "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 go back to work while your child is still under 12, and you're paying NI contributions because of your job, you won't need the NI Child Benefit Credits. So, if a family member who's not yet at State Pension Age (SPA), like a grandparent, is caring for the child under 12 while you're at work, you can transfer the NI Child Benefit credits to them. These credits can then be used by this other family member towards their own State Pension, if they've stopped working. These NI Credits are then referred to as Specified Adult Child Care Credits, and you apply for them through HMRC. HMRC won't give the credits to this other family member without first confirming that the parent has a qualifying year from working. You can only apply for these credits if the parent has claimed child benefit. More details on Specified Adult Child Care Credits can be found on Child Benefit Backdating Child Benefit can only be backdated for three months, so you need to put in a claim to Child Benefit within three months of your child being born. If a claim for Child Benefit is submitted late, it can only be backdated for three months, which means that NI Credits for Child Benefit can also only be backdated for three months. Sandra highlighted how this has led to some women missing out on the NI Credits for Child Benefit, which contribute towards their State Pension. The UK Government reviewed this in April 2023, and NI Credits can now be backdated to the child's birth. So, if you've missed these NI Credits, you'll be able to claim them from April 2026. NINOs issued for 16 year olds and change of address On the topic of National Insurance Numbers (NINOs) issued to 16 year olds and changes of address, Sandra advised: "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,". She added: "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." New Child Benefit Rates New child benefit rates, they have been in effect since April 7, 2025, and are applicable until the child turns 16, or 20 if they continue 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."
Business Mayor
05-05-2025
- Business
- Business Mayor
DWP Child Benefit alert as ex-DWP employee urges all parents to claim
Parents have been told to put a claim in for Child Benefit (Image: Maskot via Getty Images) A former Department for Work and Pensions (DWP) staffer with 42 years of experience in handling State Pensions and benefits has issued an alert to all parents. She says it is vital for everyone with a child to claim Child Benefit, even if you're not eligible for the cash part from HM Revenue and Customs (HMRC). Sandra Wrench, who dedicated her career to navigating the complexities of pensions and benefits, has laid out three compelling reasons why parents should stake their claim on Child Benefit. These include securing National Insurance credits, ensuring your child receives their National Insurance number, and boosting your own State Pension. Speaking to the Daily Record, the ex-DWP expert revealed: '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 advise: '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.' Read More Are you a champion stockpicker? For those looking to sidestep the payment while still reaping the associated benefits, Sandra points out that there's a simple option available right on the Child Benefit claim form – a box in section 4 that you can tick to opt out, reports the Daily Record. Sandra outlined three key reasons for claiming Child Benefit, even if you choose to opt out of the payment. National Insurance Credits Firstly, National Insurance Credits. You are entitled to these credits until your child reaches 12 years of age. For each week you claim child benefit, you receive one credit. Therefore, a full tax year of claiming equates to 52 credits, which contributes towards your State Pension. Sandra Wrench shares three crucial reasons parents should not ignore Child Benefit. (Image: Getty Images) Sandra said: '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 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 can only apply for these credits if the parent has claimed child information on Specified Adult Child Care Credits can be found on Backdating Child Benefit Child Benefit can only be backdated three months, so you need to submit a claim to Child Benefit within three months of the birth of your child. There are multiple benefits to making a claim (Image: Flashpop via Getty Images) 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.
Daily Record
30-04-2025
- Business
- Daily Record
Former DWP employee urges all parents to claim Child Benefit - even if they earn too much money
A former Department for Work and Pensions (DWP) employee with 42 years' experience dealing with State Pensions and benefits, is urging all parents to claim Child Benefit - even if they do not qualify for the payment element of the benefit delivered by HM Revenue and Customs (HMRC). Sandra Wrench explains three key reasons for claiming Child Benefit, which include boosting National Insurance credits, National Insurance number allocation for your child, and topping up your State Pension. The ex-DWP employee told the Daily Record: '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.' Sandra continued: '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. 'By opting out of the payment, this saves you having to complete any Tax Self Assessment, as regards child benefit.' To opt out of the payment of child benefit, there is a box on the Child benefit claim form in section 4 which you can tick. Sandra explained that there are three reasons for claiming Child Benefit, even if you opt out of the payment. 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. 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. 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. Child Benefit can only be backdated three months, so you need to submit a claim to Child Benefit within three months of the birth of your child. 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. 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. The new rates started on April 7: 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.
