Martin Lewis is urging families to make sure they are not missing out on Child Benefit payments or the valuable National Insurance credits attached to the monthly payment. During his latest BBC Radio 5 Live Podcast, the consumer champion told listeners how a new report has revealed that a staggering 750,000 families are missing out on more than £2,000 a year, on average.
The figures come from newly published analysis from Policy in Practice. The think tank revealed that nearly £19 billion is being left unclaimed by millions of people across Great Britain on means-tested benefits and social tariffs including universal Credit, Pension Credit, Carer’s Allowance and Child Benefit.
Martin warned that simply registering a child’s birth is not enough to trigger Child Benefit payments and that parents who previously earned more than the £60,000 threshold may have seen their circumstances change and would now qualify. But even if you are over the threshold, you could also be missing out on valuable State Pension contributions.
The consumer champion told listeners: “Recent stats came out that 750,000 families are missing out on an average of £2,000 a year in Child Benefit. It is a monthly payment for those with parental responsibilities for children under-16 and those with children under-20 in full-time education.
“You get Child Benefit as long as no one parent doesn’t earn over £60,000 and the amount you get is reduced if one of the parents earns between £50,000 and £60,000.
“It’s a quite bonkers system because it means two earners both on £49,000 would get Child Benefit but a couple where one doesn’t earn anything and the other earns £61,000 don’t get any Child Benefit.”
He continued: “Some new parents don’t realise you must register for Child Benefit - simply registering your child’s birth isn’t enough - you register for Child Benefit separately.”
Martin added: “Others aren’t claiming because they were higher earners, didn’t claim and now their circumstances have changed and their income has dropped below £60,000 and they haven’t started to reclaim, so it is worth doing that if you are newly eligible again.”
Martin explained that’s because even if someone earns over £60,000 they can still register for Child Benefit and then tick the box that says ‘I don’t want to be paid’, which will ensure the person staying at home to look after the child receives their National Insurance credits that help to maximise State Pension payments in retirement.
He said: “Many people earning over £60,000 don’t claim Child Benefit, for some that is a mistake. What you should actually do is register for Child Benefit and then tick the box that says ‘I don’t want to be paid’.
“Now, that may sound slightly strange, but it’s the act of registering for Child Benefit that triggers National Insurance credits for a parent who doesn’t work and looks after their child.”
The team at MoneySavingExpert.com have put together a handy guide to help people claim Child Benefit which you can read here.
To keep up to date with the latest benefits news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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