Do You Need To Claim?
From 6th April 2010 a system of National Insurance credits has been introduced to help carers build up their entitlement to a State Pension.
A person usually builds up their entitlement to a State Pension by paying National Insurance Contributions through the National Insurance system. However, many carers do not pay National Insurance Contributions if they are not working or if they receive a small wage.
The new National Insurance credits system will enable carers to continue to build up their entitlement to a State Pension when they have little or no earnings.
You may be eligible for the credits if you care for someone else (this can be one or more people) for a total of 20 hours per week or more and:-
- They receive Attendance Allowance, Constant Attendance Allowance or the care component of Disability Living Allowance at the middle or highest rate AND;
- Their care needs have been certified by a health or social care professional
Do you need to apply for the credits?
You will need to apply for the credits unless you are currently receiving Income Support and you are a full time carer (or if you already receive Child Benefit for a child under the age of 12). If this applies to you the Job Centre Plus will notify you of your award of credits.
If you need to apply for the credits guidance will be available on the Directgov website (http://www.direct.gov.uk/) or from the Benefit Enquiry Line (0800 882200) shortly. The deadline for making an application is the end of the tax year following the year when you were caring for the person. For example, if you were caring for someone during the tax year 6th April 2010 to 5th April 2011 and think you may be entitled to credits, you need to make sure you apply before 5th April 2012. The earliest date you can claim the credits from is 6th April 2010 which is the date the system started.
Just a note...
The new National Insurance credits system for carers replaces the Home Responsibilities Protection (HRP) which was in place up to 5th April 2010 and helped protect a person’s State Pension entitlement for any years they were not working or their earnings were low. If you reach State Pension age after 5th April 2010 you will receive credits rather than HRP.