DWP Child Benefit alert as ex-DWP employee urges | U.Ok.Finance News
Parents have been advised to put a declare in for Child Benefit (Image: Maskot through Getty Images)A former Department for Work and Pensions (DWP) staffer with 42 years of expertise in handling State Pensions and advantages has issued an alert to all dad and mom. She says it is important for everybody with a youngster to say Child Benefit, even if you happen to’re not eligible for the money half from HM Revenue and Customs (HMRC).Sandra Wrench, who devoted her profession to navigating the complexities of pensions and advantages, has laid out three compelling explanation why dad and mom ought to stake their declare on Child Benefit. These embody securing National Insurance credit, guaranteeing your youngster receives their National Insurance quantity, and boosting your own State Pension.Speaking to the Daily Record, the ex-DWP skilled 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: HMRC urges people incomes below £80,000 a 12 months to say money benefit For these seeking to sidestep the cost whereas nonetheless reaping the related advantages, Sandra factors out that there is a easy option out there proper on the Child Benefit declare type – a box in part 4 that you could tick to decide out, stories the Daily Record.Sandra outlined three key causes for claiming Child Benefit, even if you happen to select to decide out of the cost.National Insurance CreditsFirstly, National Insurance Credits. You are entitled to those credit till your youngster reaches 12 years of age.For every week you declare youngster benefit, you obtain one credit. Therefore, a full tax 12 months of claiming equates to 52 credit, which contributes in the direction of your State Pension.Sandra Wrench shares three essential causes dad and mom shouldn’t ignore Child Benefit. (Image: Getty Images)National Insurance NumberSandra mentioned: “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 youngster with Child Benefit Centre, the kid is allotted a NINO at that stage, which is then issued to the kid at age 16.”Specified Adult Child Care CreditsIf 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 GOV.UK.Backdating Child BenefitChild 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 BenefitIf 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”Please make sure you notify HMRC/ Child Benefit of any change of tackle as the NINO might be despatched to your 16 12 months previous at your final identified tackle,” Sandra said.”With dad and mom opting out of the cost of Child Benefit due to the High Income CB Charge, it’s important that folks notify the Child Benefit Centre of any change of tackle, so the NINO for his or her youngster is distributed to the proper tackle. If a dad or mum will not be in receipt of Child Benefit, it turns into straightforward for a change of tackle to be neglected and never notified to the related division.”New Child Benefit RatesThe new Child Benefit rates have been in effect since April 7, 2025, and are available until the child turns 16, or 20 if they remain in approved education or training.Sandra warned:”Do not confuse the precise cost of Child Benefit with NI Credits for Child Benefit – the cost of Child Benefit you get for the kid up to the age of 16, the CB NI Credits are solely out there till the kid reaches the age of 12.”Complete info on Child Benefit might be discovered on GOV.UK. The Child Benefit helpline quantity is 0300 200 3100.
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