A government scheme designed to repair gaps in National Insurance records has now been pushed back by a year, triggering fresh anger from experts who say families have already waited too long.
The problem dates back to 2013, when changes to Child Benefit rules left many families facing an unexpected dilemma.
Under the High Income Child Benefit Charge, some parents were told they could still claim Child Benefit, but would then have to pay it back through tax.
Faced with what felt like a pointless exercise, hundreds of thousands simply opted out altogether.
But that decision came with a hidden cost.
By not claiming Child Benefit, parents also missed out on National Insurance credits, which was crucial for building up their state pension entitlement while raising children.
The ‘hidden gap’ many didn’t realise
For years, many families were unaware they had created gaps in their pension record.
Even those who later spotted the issue faced another hurdle – claims for credits could only be backdated by three months, leaving some with years of missing contributions.
To solve the problem, the Government pledged to introduce a system of “replacement credits” to restore lost pension entitlement.
The scheme had been due to launch in 2026.
But it has now been delayed until at least 2027 – leaving many in limbo.
‘Deeply frustrating’
Steve Webb, former pensions minister and now partner at Lane Clark & Peacock, criticised the delay in blunt terms.
He said: “It is deeply frustrating to see a delay in a scheme designed to unpick a mess in the pension system.”
Webb added: “When the High Income Child Benefit Charge was introduced in 2013, some parents – mostly mothers – decided it wasn’t worth bothering to claim Child Benefit.”
He continued: “But by not claiming Child Benefit they also threw away valuable National Insurance credits towards the state pension.”
‘A mess from the start’
The former minister said the issue had been mishandled from the beginning – and the latest delay only adds to the problem.
He added: “The whole thing has been a mess from the start.”
The delay is likely to hit hardest those already at – or close to – state pension age, who may have less time to recover missing credits.
Officials say some affected people may be able to claim compensation if they have lost out financially. The details of that are here.
You can ask HMRC to check your case if all the following apply:
you were eligible for Child Benefit at any time from 7 January 2013
you reached State Pension age on or after 6 April 2016 and before 6 April 2027
you believe the delay in introducing replacement credits has directly reduced your State Pension payments
no one else has already claimed Child Benefit for the same child for the same dates or reported a financial loss
To report any financial loss you’ll need to follow the HMRC complaints process.
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What to include in your report
You’ll need to tell them:
if you are the parent or carer
your National Insurance number
your date of birth
your full address
the date of birth of the child (they must be aged under 12 for the period you’re claiming for)
the dates you believe you were eligible for Child Benefit
the date you reached or will reach State Pension age
You must include ‘RCPC’ as reference when you give details of your complaint.