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National Insurance Tag

The Naval Families Federation shared the announcement made by the Government last year (2017), that spouses and civil partners of Service personnel will be able to apply for a new type of National Insurance (NI) credit to protect their State Pension, if they have accompanied their partner overseas. However, the BBC reported yesterday that fewer than 4,000 people have applied for this so far. Steve Webb, director of policy at Royal London, insisted that not enough people are getting what they deserve, saying: “this is a very good scheme to recognise the service of military wives over the years, but the take-up so far has been very poor”.

The payments could be worth up to £30,000 over the course of retirement so if you believe you are eligible, please ensure that you apply.

 

How do you know if you’re eligible to apply for the new credits?

Service spouses and civil partners will be eligible to apply for the new Class 3 NI credits if they:

  • reach State Pension age on or after 6 April 2016, that means they were born on or after 6 April 1953 (if a woman) or 6 April 1951 (if a man); and
  • are or have been married to/ in a civil partnership with a member of the Armed Forces; and
  • have accompanied their spouse or civil partner on a deployment outside the UK at any time since 6 April 1975; and
  • at the time of the posting their spouse or civil partner must have paid, been treated as having paid or been credited with UK National Insurance.

You can still apply if you are now widowed, divorced or have had your civil partnership dissolved, provided you were married or in a civil partnership at the time you accompanied your partner abroad. Some Service spouses or civil partners who meet the above criteria will not have a gap in their NI records and so will not need to apply for the new credits. For example, you may not have a gap if you:

  • were working in a job during the accompanied assignment where you paid UK NI contributions
  • were self-employed and paying self-employed Class 2 NI contributions throughout the accompanied assignment;
  • received certain benefits such as Employment and Support Allowance (previously called Incapacity Benefit or Invalidity Benefit) or Child Benefit for the whole of the accompanied assignment(s)outside the UK.

 

How do I apply?

There is no time limit in applying for Class 3 NI credits, although if you apply after you reach State Pension age any increased State Pension might not be paid for periods before the date of your application. For information about applying for the new Class 3 credit visit here.

 

The Class 1 NI Credit: A wider range of benefits for deployments since April 2010

The new Class 3 credits do not replace the existing Class 1 NI credit for those who have accompanied a partner on a posting since April 2010, and which contribute not only towards entitlement to new State Pension, but also towards Employment and Support Allowance, Jobseeker’s Allowance and Bereavement Benefits (to be replaced for new claimants by Bereavement Support Payments in April 2017).

 

More information

Further information about NI credits for Service spouses and civil partners is available online at here.

 

Posted on: 7th December, 2017

Grandparents caring for grandchildren under 12 could qualify for National Insurance credits that can top up their income in retirement.

Many working-age grandmothers and fathers could qualify for Class 3 National Insurance credits for looking after children aged under 12 – which can be used to top up their income in retirement.

Half of Britain’s 7 million working-age grandparents have a grandchild under the age of 16.

Working parents can give up the Child Benefit credits they receive and donate them to their child’s grandparents or other adult family members for the previous tax year. Grandparents and parents must apply for the credits to be transferred.

 

Top grandparent facts

Top grandparent facts include:

  • 1 in 4 working families and 1 in 3 working mothers use grandparents for childcare
  • 63% of all grandparents with grandchildren under 16 help out with childcare
  • 1 in 5 grandmothers provide at least 10 hours a week of childcare
  • the proportion of grandparents who are of working age is set to grow as the retirement age gradually rises

 

More information

Applications for NI credits for caring for children under 12 need to be made to HM Revenue & Customs (HMRC) and must be signed by both the adult carer and the Child Benefit recipient. Applications need to be made in the October following the end of the tax year in which the caring took place.

The credit is a Class 3 National Insurance credit and protects entitlement to basic State Pension and bereavement benefits for spouses and civil partners.

There is no minimum requirement for the number of hours of care in a week as long as the credit is transferred for a full week. For details of who can apply and how, visit here or phone the National Insurance Helpline on 0845 302 1479.

The new flat-rate State Pension, set above today’s means-tested support, is designed to provide certainty to people about what they will get in retirement. It will benefit women, and also the self-employed, who are currently excluded from qualifying for state second pension.

Figures in this release come from the Grandparents Plus briefing paper on grandparental childcare and their publication Doing it all?

 

Posted on: 20th January, 2017

It was announced in 2016 that spouses and civil partners of Service personnel will be able to apply for a new type of National Insurance (NI) credit to protect their State Pension (if they have accompanied their partner overseas).

 

Former Defence Secretary Michael Fallon said:

“We are making sure that military spouses and partners who spend time based overseas get the State Pension they deserve.  This is the latest step under the Armed Forces Covenant to ensure that service personnel and their families are treated fairly.”

 

How do you know if you’re eligible to apply for the new credits?

Service spouses and civil partners will be eligible to apply for the new Class 3 NI credits if they:

• Reach State Pension age on or after 6 April 2016, that means they were born on or after 6 April 1953 (if a woman) or 6 April 1951 (if a man); and

• Are or have been married to /in a civil partnership with a member of the Armed Forces; and

• Have accompanied their spouse or civil partner on a deployment outside the UK at any time since 6 April 1975; and

• At the time of the posting their spouse or civil partner must have paid, been treated as having paid or been credited with UK National Insurance.

You can still apply if you are now widowed, divorced or have had your civil partnership dissolved, provided you were married or in a civil partnership at the time you accompanied your partner abroad. Some Service spouses or civil partners who meet the above criteria will not have a gap in their NI records and so will not need to apply for the new credits. For example, you may not have a gap if you:

• were working in a job during the accompanied assignment where you paid UK NI contributions;

• were self-employed and paying self-employed Class 2 NI contributions throughout the accompanied assignment;

• received certain benefits such as Employment and Support Allowance (previously called Incapacity Benefit or Invalidity Benefit) or Child Benefit for the whole of the accompanied assignment(s)outside the UK.

 

How do I apply? 

You can apply for the new Class 3 NI credits anytime from 6 April 2016. There is no time limit in applying for the credits, although if you apply after you reach State Pension age any increased State Pension might not be paid for periods before the date of your application. For information about applying for the new Class 3 credit visit here.

 

The Class 1 NI Credit: A wider range of benefits for deployments since April 2010 

The new Class 3 credits do not replace the existing Class 1 NI credit for those who have accompanied a partner on a posting since April 2010, and which contribute not only towards entitlement to new State Pension, but also towards Employment and Support Allowance, Jobseeker’s Allowance and Bereavement Benefits (to be replaced for new claimants by Bereavement Support Payments in April 2017).

 

More information 

Further information about NI credits for Service spouses and civil partners is available online here.

 

Posted on: 12th May, 2016
Updated on: 4th January, 2019