'A huge burden off our heads,' says Martin Lewis fan after increasing state pension
A MARTIN Lewis fan has revealed how the expert's little-known tip helped them boost their state pension by £7,000.
In the latest MoneySavingExpert newsletter, a reader called David told how his wife managed to fill gaps in her state pension record.
He said his wife has a ten-year gap in her administration because she has not paid national insurance contributions due to her low-paid job.
If you don't fill in the gaps, you could miss out on the full state pension when you retire, which is currently worth £203.85 a week or £10,608 a year.
This will rise by £17.35 to £221.20 in April – the equivalent of £901 per year.
It takes 35 “qualifying” years of National Insurance (NI) contributions to get the full state pension.
But thanks to a handy tip from Martin Lewis, David realized he could transfer the NI credits he had earned by claiming child benefit to his wife.
In a letter to MSE he said: 'We had been thinking about making voluntary contributions, then I read your message Missing child benefit years article and realized that whilst claiming child benefit, I could transfer all child benefit credits to my wife and plug her NI gaps.
“She got ten years of free pension credits, which would have cost us around £7,000.”
He said it was “a huge weight off our minds” when the couple realised.
If you register for child benefit, you build up entitlement to the state pension for parents who have a low income or do not work because they stay at home.
But if the higher-earning parent registers for child benefit for children under the age of 12, the partner who does not work will remain without the supplementary contributions.
Parents can check their National Insurance details and transfer NICs to the low or no-income parent to close the gap – and you can even backdate it.
You can do this online by filling out a form at Government.uk or by calling the child benefit agency on 0300 200 3100.
Who is eligible for child benefit?
You will normally be eligible for child benefit if you live in the UK and are responsible for a child under the age of 16.
The aid can also be applied for for a child under the age of 20, if he or she is in approved education or training.
But when two or more people share caring responsibilities for a child, it can only be claimed by one person.
To be considered responsible for a child, you must live with the child or pay at least the same amount as child support to care for the child, for example food, clothing or pocket money.
Foster parents can also claim child benefit as long as the municipality does not pay anything for their housing or maintenance.
Legal guardians or parents who adopt a child can also apply for support once the child comes to live with them.
How do I apply for child benefit?
As soon as you have registered the birth of your child, or as soon as your child comes to live with you, you can open a claim.
It can take four months to process a new child benefit application, sometimes longer if you are new to Britain, but this can be backdated for up to three months.
So it is best to start the application procedure as soon as possible.
To apply, you must complete an Child benefit application form CH2 and send it to the Child Benefit Agency.
The address it should be sent to is as follows:
Child Benefit Office (GB)
Washington
NEWCASTLE ON TYNE
NE88 1ZD
Please note that you will need a stamp to send the application form. You can buy these at the post office.
Meanwhile, The Treasury has revealed that from 2026, parents will be able to claim National Insurance (NI) credits for years in the past where they did not claim child benefit.
In addition, thousands of parents could miss out on as much as £30,000 if they fail to tick a crucial box on a child benefit form.
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