Child Benefit and Your State Pension - NI Credits Explained
The often-overlooked reason to always claim Child Benefit - even if HICBC claws back every penny.
How NI Credits Work
When you claim Child Benefit, HMRC automatically awards you Class 3 National Insurance credits for each year you are the claimant, until your youngest child turns 12. These credits count towards your qualifying years for the State Pension - exactly as if you had been working and paying NI contributions.
- Full new State Pension: £230.25/week = £11,973/year
- Qualifying years needed: 35
- Value per qualifying year: £11,973 / 35 = £342/year in pension
- NI credits awarded: 1 per year of claiming until youngest child turns 12
- Maximum credits: 12 years per child (more if additional younger children)
Who Benefits Most
Transferring NI Credits to a Partner
If the person who claims Child Benefit is already building a full NI record through work, the credits may be "wasted" on them. You can transfer unused credits to a non-working or lower-earning partner who needs them more.
Both people must be living together and the child must live with you. The transfer applies to the credits for any given tax year where the claimant already has a full qualifying year through work.
Apply for transfer of credits on gov.uk →Transfer Credits to a Grandparent
A grandparent (or other close relative) under State Pension age who cares for a child aged under 12 can receive Specified Adult Childcare Credits. This allows the parent's unused credits to be transferred to the grandparent.
This is particularly valuable for grandparents who retired early or have gaps in their NI record. Each year of credit is still worth £342/year in pension.
New April 2026: Retrospective Claims Back to 2013
If you did not claim Child Benefit between 2013 and now - perhaps because you earned over the HICBC threshold and assumed it was not worth claiming - you may now be able to make a retrospective claim to get NI credits applied back to 2013.
HMRC introduced this measure to address the unfairness caused by the 2013-2024 HICBC threshold freeze, which led many parents to opt out of Child Benefit entirely and lose valuable NI credits.
Contact HMRC or a tax adviser to find out if retrospective NI credits can be applied to your record.
Check Your NI Record
See how many qualifying years you have, identify gaps, and check whether Child Benefit credits have been recorded correctly.
Check your State Pension and NI record on gov.uk →The Bottom Line: Always Claim Child Benefit
Whether your income is £20,000 or £120,000, claiming Child Benefit earns you NI credits at no additional cost. If you earn over £80,000, opt out of receiving the cash payments (to avoid the HICBC) but remain registered as a claimant. The NI credits alone make this worthwhile - they are worth an estimated £342/year per year in retirement income, for every year you claim.