Former DWP employee urges all parents to claim benefit for three reasons

A former Department for Work and Pensions (DWP) worker with 42 years' experience handling State Pensions and benefits is encouraging all parents to apply for Child Benefit - even if they don't qualify for the actual payment from HM Revenue and Customs (HMRC).

Sandra Wrench outlines three crucial reasons for making a Child Benefit claim, including securing National Insurance credits, obtaining a National Insurance number for your child, and enhancing your State Pension entitlement.

The ex-DWP worker revealed to the Daily Record: "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."

Sandra added: "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.

"By opting out of the payment, this saves you having to complete any Tax Self Assessment, as regards child benefit."

Parents can opt out of receiving the payment by ticking a box in section 4 of the Child benefit application form, reports the Daily Record.

Sandra outlined three key reasons for claiming Child Benefit, even if you choose to opt out of the payment.

National Insurance Credits

You're entitled to National Insurance (NI) credits until your child turns 12. For each week you claim child benefit, you receive one credit, meaning a full tax year of claims equates to 52 credits - a qualifying year towards your State Pension.

If you have another child, your NI credits continue until that child is also 12. If your child turned 12 in February, for example, you would receive NI Credits until that February. If you hadn't returned to work when your child turned 12, resulting in a part-qualifying year from April to February, you could make it a qualifying year by paying Voluntary Class 3 contributions.

Therefore, it's important to regularly check your NI record, including any part-qualifying years. You can do this on GOV.UK or by calling the HMRC NI helpline on 0300 200 3500.

National Insurance Number

Sandra explained: "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 child with Child Benefit Centre, the child is allocated a NINO at that stage, which is then issued to the child at age 16.

Specified Adult Child Care Credits

If 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 here.

Backdating Child Benefit

Child 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.

NI Credits for Child Benefit

If 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

Sandra said: "Please ensure you notify HMRC/ Child Benefit of any change of address as the NINO will be sent to your 16 year old at your last known address.

"With parents opting out of the payment of Child Benefit due to the High Income CB Charge, it is essential that parents notify the Child Benefit Centre of any change of address, so the NINO for their child is sent to the correct address. If a parent is not in receipt of Child Benefit, it becomes easy for a change of address to be overlooked and not notified to the relevant department.

Child Benefit rates 2025/26

The new rates started on April 7:

• Eldest or only child - £26.05 a week
• Additional children - £17.25 a week per child

Child Benefit is payable until the child is 16, or up to age 20 if the child is staying in approved education or training.

Sandra warned: "Do not confuse the actual payment of Child Benefit with NI Credits for Child Benefit - the payment of Child Benefit you get for the child up to the age of 16, the CB NI Credits are only available until the child reaches the age of 12.

Full details on Child Benefit can be found on GOV.UK here. You can also contact the Child Benefit helpline is 0300 200 3100.