Home Responsibilities N.I. for women scam

Elatham

The 15 years of home responsibilities national insurance contributions given to women who stay at home to look after children looks generous until you see how HMRC work out the state pension calculation.
For example-
someone born in 1944 needing 39 years of contributions with 16 working years to her credit may think she will now get 31 years credit.

Not HMRC - they subtract the 15 years from the 39.
Look at the difference in the pension the woman gets on say a monthly £1000 state pension.

HMRC calculation - 16 / 24ths of £1000 = £666.66

Whereas 31 / 39ths of £1000 = £794.87

What a scam and affects women again
Does anyone with influence know about this?

MallyGirl

I have changed this to mixed case as all caps is very hard to read and is considered shouting

Gary1984

I don't really follow your calculations but do the years collecting the child benefit coincide with the working years? If so it seems perfectly reasonable. Why would someone be given two stamps for the same year? If they raised a child for 15 years then went to work for 16 years presumably they'd get 31 in total?

Remember you can always top contributions for missing years to get extra stamps  which is one of the best financial investments you can make.

sammyjammy

Its no scam, thats how it worked (not sure if its different now), the requirement of xx number of years is reduced.

molerat

For pre 2010 retirees HRP reduced the number of years needed for a full pension and if you didn't have the full amount it was pro rated. Post 2010 each year gave an NI credit. As usual it's not a scam, just different rules for different schemes.