National insurance credit plan risks ‘falling short’

The head of HMRC has told the Treasury Committee that it will take at least two years to upgrade IT systems to handle the new national insurance credit for people who did not claim child benefit

The Treasury Committee has published correspondence from HMRC on how it plans to prevent parents who did not claim child benefit from missing out on their state pension entitlement.

Having reviewed the response from HMRC chief executive Jim Harra, the MPs said that questions remained over the changes, particularly the extent to which HMRC will be able to reach those affected and the three-year lead time required to deliver the scheme.

The programme will allow parents and carers to apply for national insurance credits for tax years dating back to 2013 where they have not claimed child benefit, to ensure that they do not miss out on their state pension entitlement.

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