State Pension  

Parents unaware of child benefit pension link

Sir Steve Webb, former pensions minister and director of policy at Royal London, said HMRC’s own research showed that people were completely baffled by the link between the high income child benefit charge and their future state pension.

He said: "People are turning down child benefit without realising they are throwing away valuable national insurance credits towards their pension. Expecting people to claim a benefit in order to get NI credits but then to turn down the weekly benefit payment is utterly baffling to most people. 

"HMRC need to rethink this whole system and make sure that thousands of mothers do not continue to miss out on money which is rightly theirs."

Despite a petition launched by Sir Steve, the government has so far refused to allow people to backdate child benefit claims by more than three months.

What do you think about the issues raised by this story? Email us on to let us know.