We explain how you can claim the cash now
HUNDREDS of thousands of parents are missing out on a key benefit that is worth £1,354 a year and could boost your retirement savings.
In a freedom of information request to HM Revenue and Customs, Sky News found that at least 214,000 people are not claiming child benefit, so losing out on the free national insurance credits that accompany it.
That’s 66,000 more people missing out than five years ago, when 148,000 were thought to be eligible for but not claiming the benefit.
Many of these people are unaware they can claim child benefit or think their earnings mean they are no longer eligible for it.
Child benefit is currently worth £26.05 a week, or £1,354.60 a year, for the eldest child.
You get £17.25 a week, or £897 a year, for each additional child.
If you are in charge of rearing a child under the age of sixteen or under twenty if they are still enrolled in authorized school or training, you may be eligible to claim it.
Only one person can get child benefit for a child but there is no limit to how many children you can claim for.
Every four weeks, the money is automatically paid.
You also receive national insurance credits when you claim child benefit, and these credits go toward your state pension.
If you are a parent or guardian who is registered for child benefit for a child under 12 then you will automatically get class 3 national insurance credits.
You may be eligible for some benefits, such as the state pension, if you use these credits to close any gaps in your national insurance record.
If you are working then you will automatically receive these credits by paying tax on your earnings.
You need 25 years of national insurance contributions to get the full new state pension, which is worth £230.25 a week.
However, in order to receive any state pension, you must have contributed for at least ten years.
How much am I missing out on?
One year of national insurance contributions can boost your state pension by around £6.58 a week, which adds up to £342.16 a year.
That means if you take time off work to care for your child until they turn 12, you could be missing out on £4,106.
Meanwhile, if you have multiple children and take even more time off work then the benefit of claiming these credits could be even greater.
Although everyone can claim child benefit, if you are earning more than £60,000 a year then you might have to pay the high income child benefit charge.
This is a penalty that claws back some of the benefit from high-earning families.
The amount you are charged depends on how much you earn.
If your income is between £60,000 and £80,000 then you have to pay back 1% of the child benefit for every £200 of income.
Once you earn more than £80,000 a year you lose the benefit entirely.
However, since you will still receive the national insurance credits, it is still worthwhile to apply for child benefit even if you are not eligible for any cash payments from the government.
In order to pay the tax levy, you must register for self-assessment and file an annual tax return.
How can I claim it?
You can claim child benefit 48 hours after you have registered the birth of your child, or once they come to live with you.
Child benefit can also be backdated for up to three months from the date you make the claim.
Only one parent can get child benefit for a child, so you need to decide if it is better for you or the other person to claim.
Whichever parent claims the benefit will get the national insurance credits towards their state pension.
If you have more than one child then you can claim for different children.
But if you live together, only one of you can claim at the higher rate, which is given for the eldest child in the household.
If you both claim at the higher rate then you may need to pay back some of the money.
Once you have claimed a year’s worth of credits you can transfer them to your spouse or partner who is living with you.
If you don’t want to receive child benefit but still want to get the credits then you can make that clear in a claim form.
