Mothers miss out on £500m in state pension rights - research

Due to Child Benefit rules changes

Hannah Godfrey
clock • 3 min read

Mothers have missed out on more than £500m in state pension rights in the last three years because of changes to the rules around Child Benefit, according to research by Royal London.

The group's policy paper The Mothers Missing out on Millions showed the High Income Child Benefit Tax Charge introduced in 2013 meant families receiving child benefit where one parent earns more than £60,000 a year incur a tax charge that wipes out the value of Child Benefit. In response, said the report, growing numbers of mothers are simply not claiming Child Benefit in the first place and are thereby losing out on valuable credits towards their state pension rights. Under the current National Insurance system, a parent - usually a mother - receiving child benefit for a child under ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Identification remains weakest link in vulnerability assessments

Identification remains weakest link in vulnerability assessments

'Relying on the adviser to spot the signs personally is unquestionably impractical'

Jonathan Barrett
clock 26 November 2024 • 4 min read
Advisers revisit processes after FCA's retirement income review

Advisers revisit processes after FCA's retirement income review

Thematic Review of Retirement Income Advice released in March

Jenna Brown
clock 16 September 2024 • 2 min read
Two firms declared in default by FSCS over pensions advice

Two firms declared in default by FSCS over pensions advice

Both Oakwood Financial Management and GO IFA are no longer trading

Isabel Baxter
clock 11 April 2024 • 1 min read