Published On: Tue, Aug 4th, 2020

Child Benefit payments can boost state pension income but there is a warning about claim | Personal Finance | Finance

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Child Benefit is something which a person who is responsible for bringing up a child under the age of 16 – or under 20 if they stay in approved education or training – can claim. While only one person can get Child Benefit for a child, there is no limit as to how many children one can claim for.

For those who may face having gaps in their record when it comes to National Insurance contributions, there are ways to make these up.

This could be done by paying voluntary National Insurance contributions.

However, there is also another option which would avoid needing to do this.

Rather, some people will be able to get National Insurance credits.


And, this is something which those who receive Child Benefit payments for a child under the age of 12 are able to get.

“If your child is under 12 and you’re not working or do not earn enough to pay National Insurance contributions, Child Benefit can give you National Insurance credits,” states the government website.

“These credits count towards your state pension, so you do not have gaps in your National Insurance record.”

However, with only one person able to claim Child Benefit for a child, the government has issued a warning with regards to claiming.

The Government website explains: “Only one person can get Child Benefit for a child, so you need to decide whether it’s better for you or the other parent to claim.

“The person who claims will get National Insurance credits towards their state pension if they are not working or earn less than £166 per week.”

It’s something which Kay Ingram, Director of Public Policy at LEBC Group has addressed.

Ms Ingram, who is a chartered financial planner, told “Understanding who in the family can most benefit from state pension credits is vital in ensuring that the credits really do buy extra pension and are not wasted due to the individual who is claiming already having a full pension.”

How much is Child Benefit?

Child Benefit is paid at two different rates, with the one which applies depending on who it is for.

Should it be for an eldest or only child, for instance, the weekly rate is currently £21.05.

Then, for any additional children, it stands at £13.95 per child.

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