Giving up work - what do I do about NI?

helend

Hi all

Sorry if I've posted this in the wrong place

I am pregnant with my 3rd child and due to childcare costs (they would be a hell of a lot more than I earn) OH and I have decided that I should take a couple of years out of work.

I don't think I'd be entitled to any benefits as I am married and OH earns approx £30k (inc. overtime) but I am wondering what I do regarding my National Insurance as I am taking such a long time out of work - do I 'sign on', can I still get my stamp at all?

Any advice/info would be much appreciated:D

alwaysskint96

If you are getting child benefit in your name then that gives you HRP- which means that you dont have to pay so many years of NI to get pension etc

helend

Thanks for your reply - sorry if I sound a bit dense but what is HRP?

real1314

HRP = Home Responsibilities Protection. What it means is that for any time when you are receiving Child Benefit the number of years you need credits in is reduced.

e.g normal working life for a man is 16-65 = 49 yrs
For a full pension you need 44 yrs of credits. i.e 44 out of 49
If you were off work with a child, getting CHB for 5yrs, it would be reduced to needing 39 out of 44.

helend

Many thanks for your replies:D

itsnotfair_2

You get HRP while ever you have a child in full time education. make sure the child benefit is paid in your name in order to get the HRP. You may need to notify the pensions people, I can't quite remember.

seven-day-weekend

I think you can get HRP for a maximum of 19 years.

So, any time you took out from work to raise children, and claiming Child Benefit, you would need to pay that many years less NI to get full State Pension. Therefore your pension is protected while you are unable to work as you have Home Responsibilities. It also applies to people claiming Carers' Allowance.

Foe example, I have 13 years HRP, and therefore need only pay 26 years NI instead of 39.