Home Responsibility Credits for Retirement Pension

Hello,

Please tell me if I’m wrong about this please.

I’ve just come off the .GOV pensions calculator.  One of the questions it poses is: before 2010 how many years did you claim child benefit for a child under 16 years?  My client, having 4 children, had claimed this for 22 years and the amount of Retirement Pension it calculated was in the region of £81 weekly.  However, and this is where I might be wrong, I understand that any years of getting Child Benefit for an under 16 year old pre 1978 don’t count for Home Responsibilities Credits.  So in this case, as Child Benefit became in payment in 1971, the amount of years will reduce by 6 to 16 and the Retirement Pension payable would be in the region of £61 weekly, a full £20 a week less than the Calculator suggests. 

The Pensions Calculator does not mention the pre 1978 scenario and is most misleading.  However, am I completely wrong about this?

I have telephoned the Child Benefit Office who didn’t understand the question so referred me to HMRC.  HMRC appeared to be too busy and I was unable to establish contact.

It would be good if someone could clarify this for me please.

Thank you so much.

Patrick

Hi Patrick

Has your client done anything else since claiming child benefit that might attract credits? working? claiming? caring?

Patrick Joseph Hill - 05 December 2014 10:30 AM

So in this case, as Child Benefit became in payment in 1971, ...

Child Benefit per se was only introduced in 1977, when it began to replace Family Allowance (eg, see this IFS spreadsheet. So in that respect, I suppose the calculator can technically at most only credit you with one year too many?

Daphne - 05 December 2014 04:23 PM

Hi Patrick

Has your client done anything else since claiming child benefit that might attract credits? working? claiming? caring?

Hello Daphne,

Yes, I’ve already factored additional work/credit scenarios.  It’s the Credits for Home Responsibilities that are the issue.  The question is whether entitlement begins from 1978, or, as perhaps the next helpful response is suggesting from the beginning of Child Benefit in 1977 and will, therefore, exclude any time on family allowance which is the case with this person [1971].

Thank you.

See you in Durham Daphne.

Patrick.