Our petition aimed to help stop thousands of mothers across the UK ending up with lower state pensions
Why is it so important?
Since 2013, tens of thousands of parents – mostly mothers – have responded by not claiming child benefit. They’ve decided that having one parent receiving child benefit and another parent getting a tax bill of the same amount is a bit of a waste of time. The problem is that by opting out of the child benefit system, they’re missing out on valuable National Insurance credits that help to protect their National Insurance record for periods when they’re out of paid work – to look after their children, for example. As a result, we think that many tens of thousands of mothers could be looking at a reduced income in retirement unless something is done.
We’re particularly concerned about this because there are strict rules on how far child benefit claims can now be backdated. Even mothers who become aware of the issue now may find that they’ve lost out on years of credits towards their pension and can do nothing about it.
Changing the system
With so much evidence that women tend to end up in retirement with poorer pensions than men, we think it’s vital that the Government tackles this entirely avoidable problem, which could make matters worse. So we placed a petition on the Parliament website calling on the Government to make two changes:
- To lift the strict limits on backdating, so that when parents become aware of what they’ve lost they can make a claim back to 2013 if necessary.
- To use birth registers and other information to identify the mothers who are missing out and actively contact them, rather than wait until they find out about the problem themselves.
The petition closed in May 2019 and received almost 14,000 signatures. You can read the Government's response on the petition website.
More news and insights
Staying safe from Brexit scams
With confusion around Brexit giving fraudsters more opportunities to scam customers, knowing what to look out for can help you to protect your pension pot.
Your financial year ahead
When a new year comes around the months ahead can seem daunting, but there are lots of ways to help to boost your savings.
Can you invest without risk?
Moving your money out of savings may seem tempting in a low interest rate environment, but can you invest without putting your nest egg at risk?
Should you save or invest?
While savings accounts may seem like a safe place to keep your hard-earned cash, low interest rates mean it is not always the best option.
Investing for uncertain times
Knowing how to make the most of stock market growth, while protecting yourself from any changes, can help your investments to perform well.
Where to get information about your finances
It’s a good idea to seek professional advice when making important financial decisions, but did you know there’s also plenty of other help available?