Government announced replacement credits system

The National Insurance replacement credits service, announced by the government in April 2023 to help parents who failed to claim child benefit in time, has been delayed by a year. It was originally due to launch in April 2026 and is now expected in April 2027¹.

The service is designed for parents and carers who did not claim child benefit, often because of the High Income Child Benefit Charge (HICBC), and who as a result missed out on National Insurance credits that count towards their state pension¹. The issue dates from changes introduced in 2013, when the HICBC came into force¹. Because child benefit claims can only be backdated for three months, some parents who later realised they could claim the credits without receiving payments have been left with years of missing NI credits¹.

The HICBC threshold has been £60,000 since the 2024-25 tax year. Above that, the highest earner pays back 1% of the benefit for every £200 of income over the limit, and once income reaches £80,000 the tax charge equals the full amount of the benefit¹. Before the changes, the charge started at £50,000 and the benefit was lost entirely once income reached £60,000¹. Child benefit is worth £27.05 for the eldest child and £17.90 for each additional child in the 2026-27 tax year¹. It is currently worth over £1,300 a year for the first child and over £880 for each additional child¹.

You need 35 full years of NI contributions to get the new full state pension and 10 years to receive anything at all¹. The current delay is reportedly down to the complex technical nature of the project¹.

HMRC said:

HMRC also said it expects very few of those who benefit from the service to have reached state pension age by April 2027, because they will be families with children under the age of 12 since 2013¹.

Why it matters for households

HMRC says most people with gaps in their NI record will not be affected by the delay, because they will still be able to apply for credits once the service becomes available in April 2027¹. Some people may see a short-term impact on their state pension, most likely those already receiving it or reaching state pension age before April 2027, because missing credits may not be added to their record in time to increase payments during that period¹.

HMRC says that if you believe you will suffer financial loss because of the delay, you can ask it to look at your case. To be considered, you need to meet four criteria: you were eligible for child benefit for a child under the age of 12 at any time from 7 January 2013; no one else claimed child benefit (or reported a financial loss) for the same child during those dates; you reached or will reach state pension age between 6 April 2016 and 6 April 2027; and the delay in introducing the replacement credits service directly affects your state pension payments¹. Requests can be made through HMRC's complaints process, online, by post or over the phone¹. HMRC says it will review each case individually and, if it agrees a financial loss has occurred, calculate a payment reflecting the impact on your state pension up to April 2027. Any payments are expected to be made after the replacement credits service is introduced in April 2027¹.

Claiming child benefit also gives NI credits if you are responsible for a child under 12, and these credits can be transferred to a grandparent or another family member who provides care¹. Carer's Credit is a separate route to protecting a National Insurance record.

What happens next

The replacement credits service is expected to launch in April 2027, with claims able to go back to January 2013¹. Payments to those whose complaints are upheld are expected after that launch¹.