Home Responsibilities - My Partner

dfarry

Looking on the pensionsadvice website I stumbled across the Home Responsibilities page and thought about my partner.

She has not worked for 7 years whilst looking after our two children (6 and 4), she does have a frozen occupational pension scheme with around 7 years paid in I believe and was opted out of serps when she was working. She does not have any other private pension that we have paid into in the meantime. We are not currently married and I have a mix of occupational and pension schemes (as you may have seen in my other messages)

A few months ago she received a letter stating that she had underpaid NI and that this would affect he state pension - but not to worry if she was looking after our children as a parent.

Reading on the Inland Revenue website it states that she would be automatically entitled to covering bonus on her state pension for the period that she was caring... but then it also seems to mention about applying for this?

The plan is for her to start working again soon in a part time job - is this likely to affect her state pension too?

I am mainly concerned that we should be doing something now or she may loose her entitlement to any form of NI credits towards the state pension - is this likely?

Thanks for your help

CIS

If no NI is paid for a year you will automatically get a letter from the IR regarding paying for the missing NI, this is sent regardless of whether you are entitled to HRP for that tax year,

Your partner (providing the child benefit is in her name) will automatically receive HRP from the April after the youngest childs date of birth until the april prior to the childs 16th birthday.

HRP will go on her record but will be applied to help her State Pension for any year in which she is entiled to HRP but does not work enough or receive enough NI credits to make that year a qualifying year.

NOTE: in most cases a qualifying year is better on your record than relying on a year of HRP for the State Pension is calculated.

oldmotherreilly

I looked into this as well when I went on a career break and was told that one thing you do have to watch is that HRP is only given for a complete year (I think April to March) so if your partner gave up work half way through the year she would not be covered for that initial year off and so would probably be better off buying the credits for that initial period.

CIS

It wouldn't matter for HRP for child benefit, HRP for child benefit is only awarded from the april after the childs date of birth, and then continues so until the april prior to the 16th birthday.

Once you are receiving it you could give up work at any point and the HRP would apply for that tax year if you needed it. This happens because once you are eligible for it, (ie from 6/4 after childs DOB), it is noted on your record every year until eligibility ends, it is then applied for that year if your earnings/NI credits dont cover you, even if you stop work part way through the year.

IIRC, HRP from other benefits can be different and some only apply HRP if you reecive the benefit for a complete tax year.