HMRC give update on National Insurance replacement credits

The replacement credits service is intended to help certain parents and carers fill gaps in their National Insurance record, and was due to be available from April 2026, see GOV.UK. However, HMRC have now confirmed it is not expected to be available until April 2027. 

HMRC have published new guidance explaining how some people may be able to report a financial loss if they are affected by this delay.

Who might be entitled to replacement National Insurance credits?

The issue mainly affects parents and carers who:

• were eligible for Child Benefit for a child under 12 from 7 January 2013; but
• did not claim Child Benefit (for example, because of the high income child benefit charge impacting a higher-earning partner); and
• as a result may have gaps in their National Insurance record.

These gaps can reduce entitlement to the state pension.

  Not everyone will necessarily have gaps in their National Insurance record in this situation. For example, if you were working during the period, your record might not have been affected. You can check your National Insurance record online or by using the HMRC app if you are unsure if you have any gaps. 

You can read more about how your National Insurance record affects your state pension entitlement in our guidance.

Impact of the delay

For those who do have gaps in their National Insurance record, most will not be affected by the delay in launch of the new service, as they will still be able to apply for National Insurance credits once the service becomes available in April 2027.

However, some individuals may see a short-term impact on their state pension. This is most likely to affect people who:

• are already receiving their state pension; or
• will reach state pension age before April 2027.

This is because any missing National Insurance credits may not be added to their record in time to increase their pension payments during that period.

Reporting a financial loss

HMRC’s guidance explains that you may be able to ask them to look at your case if you believe the delay will cause you a financial loss.

To be considered, you will need to meet certain conditions. These include that:

• you were eligible for child benefit for a child under the age of 12 at any time from 7 January 2013;
• no one else has already claimed child benefit (or reported a financial loss) for the same child for the same dates;
• you reached (or will reach) state pension age between 6 April 2016 and 6 April 2027; and
• the delay in introducing the replacement credits service will directly affect your state pension payments.

Requests should be made through HMRC’s complaints process. You will need to provide details such as your National Insurance number, relevant dates and why you believe you have been financially affected. You can do this using their online complaints service, but there are also post or telephone routes available. For full details of the information you will need to include in your complaint, visit GOV.UK.

What HMRC say will happen

HMRC say they will review each case individually and may ask for more information.

If they agree that you have suffered a financial loss, they will calculate a payment to reflect the impact on your state pension up to April 2027. Any payments are expected to be made after the replacement credits service is introduced.