Parents could increase state pension with HMRC benefit | Personal Finance | Finance

Parents or carers looking after youngsters under 16 can claim an HMRC benefit worth over £100 monthly if they meet specific criteria. However, even those ineligible for financial support may still be able to boost their state pension by submitting a claim.

HMRC encouraged people to check their eligibility for Child Benefit, posting on X about the three potential advantages it offers parents and carers. The department also emphasised that claims can now be submitted online.

Claiming Child Benefit can provide

To qualify, you must be raising a child under 16, or under 20 if they are in approved education or training. You will also need to be residing in the UK and the child must either live with you or you contribute towards their care roughly the same amount you would receive from the benefit.

If you or your partner earned above £60,000 for the 2024/2025 tax year you may need to repay some of the Child Benefit through the High Income Child Benefit Charge.

If your income exceeds the threshold you can choose to receive the payments and pay the tax charge or opt out of receiving the payments entirely.

Opting out of the payments means you can still access the other support from Child Benefit such as National Insurance credits. For children under 12, you’ll automatically receive National Insurance credits when claiming Child Benefit.

Only one person can receive Child Benefit for a child, but there’s no cap on the number of children you can claim for. For families with just one eligible child, this could amount to £104.20 per month.

These credits contribute towards your state pension and can be a vital support for people who are not working or not earning enough to pay National Insurance contributions whilst raising children. To qualify for the full new state pension, you need approximately 35 years’ worth of these credits or contributions.

Even if you don’t require the credits, you might be able to transfer them to your partner or a family member who cares for your child through Specified Adult Childcare credits.

Submitting a claim for Child Benefit will also secure a National Insurance number for your child without them needing to apply for one. They’ll typically receive this number shortly before their 16th birthday.

More information and the online application can be found on Gov.uk