If you or your spouse have taken time off work to look after young children you may not have built up a sufficient record of NI payments and credits to qualify for the full rate of the state pension. The good news is that HRP may be available in these and also in some other rarer circumstances.
HRP is a special form of NI credit. Typically HRP is available to recipients of Child Benefit (CB) where the child(ren) are under the age of 16. It is also available to those:
From 6 April 2002 HRP is enhanced in some circumstances such that the State Second Pension now provides an earnings related pension to those who do not work at all for a complete tax year, or earn less than the NI lower earnings limit. The main, but not the only, instance of this is where the individual is the main recipient for CB in respect of a child aged under six.
Where HRP is due because of the receipt of CB for a complete tax year, or also in most cases where there has been a complete tax year’s payment of Income Support, the claimant should not have to do anything. Instead the Child Benefit Office, the Department for Work and Pensions and the National Insurance Contributions Office will liaise.
Otherwise, HRP now has to be specifically claimed. This includes cases where the reason for HRP being due changes during the year. The time limit is three years after the end of the year for which the claim arises and a fresh claim is required for each year. If this affects you or a family member you should claim now for 2003/04, 2004/05 and 2005/06.
Further details can be found in the Pension Service leaflet PM9 ‘State pensions for carers and parents; your guide’ which can be downloaded at www.thepensionservice.gov.uk or a paper copy ordered by telephoning 08457 313233.