Does HRP count towards pension same as Class 2?

ManicMum

Hello

I am trying to work out whether a Small Earnings Exception Certificate would be better for me or not. I know Class 2 brings added advantages with access to ESA, if ever needed. Won't be needing Maternity any more . However, on the point of the pension benefits, does HRP give you equal credit towards pension as class 2 would?


Thanks

themull1

Small Earnings exception does not give any credit towards your Pension. Class two, if paid for a full year will count, HRP will count, but only if you're not working for each of the years concerned. So if you're self employed, you would be better paying the Class 2. Unless you already had 30 qualifying years.

CIS

HRP used to work by reducing the number of years required for a state pension rather than giving you a years credit. When they changed the rules in 2010 they started to treat a year of HRP as a years NI credits.

HRP is no longer credited, any existing HRP is still looked at when working out entitled. From April 2010 a new system replaced HRP.

Changes from April 2010 for parents and carers

Home Responsibilities Protection has been replaced for people reaching State Pension age on or after 6 April 2010.
From 6 April 2010, parents and carers are able to build up qualifying years through new weekly credits for the basic State Pension and additional State Pension. If you are a parent or carer, you will get a credit for each week in which you:

• are getting Child Benefit for children aged under 12
• are an approved foster carer
• are caring for at least 20 hours a week for people who are getting Attendance Allowance, the middle-rate or highest-rate care component of Disability Living Allowance, or Constant Attendance Allowance, or the need for care has been certified

There will be no limit to the credits awarded to parents and carers after April 2010, as long as you meet the qualifying rules.
If you reach State Pension age on or after 6 April 2010, complete tax years of Home Responsibilities Protection you have already built up before 2010 have been converted into qualifying years up to a maximum of 22 years. These qualifying years will also count towards bereavement benefits.

ManicMum

still confused. So you no longer need to be at home for the whole financial year to get HRP? It is now done weekly - so if I work half the year and din't work the other half, I would get 6 months credits?

Also, if I have had HRP for last 8 years, does that mean I now only need to have 22 years of credits to get full state pension?

thanks. :eek:

CIS

still confused. So you no longer need to be at home for the whole financial year to get HRP

HRP is no longer accrued from April 2010 and is replaced by weekly NI credits so you can work part of the year and still qualify for a full year towards your pension as long as you have the equivalent of 52/53 weeks of NI credits.

so if I work half the year and din't work the other half, I would get 6 months credits?

As I understand it, yes.


(Its a few years since I last worked on state pensions but as a basic explanation ...) HRP worked on a full years basis but you didn't have to have not worked for the entire year. Assuming you were eligible to claim HRP for the entire year then it would cover you if you were short of the required NI record for that year e.g you may have worked for 40 weeks and not paid enough NI to give a qualifying year so HRP could be used to help cover the year in place of the NI you had paid..

Also, if I have had HRP for last 8 years, does that mean I now only need to have 22 years of credits to get full state pension?

Assuming these are full years of HRP then you have 8 years earned towards your pension.