Reporting Financial Loss from National Insurance Credits Service Delays

Delays to the National Insurance replacement credits service mean some parents and carers reaching State Pension age before April 2027 may have received lower pension payments than expected. If you're affected and believe you've suffered a financial loss, you can report this to HMRC through their...

What are National Insurance replacement credits?

National Insurance credits help protect your State Pension entitlement during periods when you're not paying National Insurance contributions. Replacement credits are specifically for parents and carers who were eligible to claim Child Benefit but chose not to claim it—often to avoid the High Income Child Benefit Charge.

You may be able to claim National Insurance replacement credits if you were eligible for Child Benefit (but did not claim it) for a child under 12 from 7 January 2013 onwards.

Why the delay matters

HMRC has delayed the replacement credits service until April 2027. For most eligible parents and carers, this delay won't cause problems—they'll simply apply when the service opens in 2027.

However, the delay could financially impact you if you've already reached State Pension age or will reach it before 6 April 2027. Without the credits being processed, your State Pension calculation may not include years when you were caring for children, potentially resulting in lower pension payments.

Who is affected by the delay?

You're potentially affected if you:

Are already over State Pension age (from 6 April 2016 onwards), or
Will reach State Pension age before 6 April 2027

State Pension age is currently 66, but this varies depending on your date of birth.

When you can report a financial loss

You can ask HMRC to review your case if all of the following apply:

You were eligible for Child Benefit at any time from 7 January 2013
You reached State Pension age on or after 6 April 2016 and before 6 April 2027
You believe the delay has directly reduced your State Pension payments
No one else has already claimed Child Benefit for the same child for the same dates or reported a financial loss

The last point is important—only one person can claim credits for a particular child for a specific period. If someone else (such as the other parent) has already claimed Child Benefit or reported a loss for those dates, you cannot make a separate claim.

How to report your financial loss

To report a financial loss, you must follow the HMRC complaints process. This is the formal route for seeking compensation.

Information you'll need to provide

When making your complaint, you must include:

Whether you are the parent or carer
Your National Insurance number
Your date of birth
Your full address
The child's date of birth (they must have been under 12 for the period you're claiming for)
The dates you believe you were eligible for Child Benefit
The date you reached or will reach State Pension age

Important: You must include 'RCPC' as your reference when submitting your complaint. This helps HMRC identify your complaint as relating to replacement credits.

Reporting online

The quickest way to report is through the HMRC complaints online service:

1. Sign in to the service (or create sign-in details if you don't already have them)

2. Confirm whether your address is in the UK or overseas

3. Choose 'Make a new complaint'

4. Select the option 'National Insurance including refunds, automatic and voluntary contributions, credits and National Insurance numbers'

5. Provide details of your complaint, including all the information listed above and the reference 'RCPC'

6. Choose whether HMRC can contact you by telephone or email

7. Complete the declaration and submit

Reporting by telephone or post

Alternatively, you can:

Call National Insurance enquiries
Write to National Insurance and employer complaints

When contacting by telephone or post, remember to quote 'RCPC' as your reference.

What happens after you report

After you submit your complaint, HMRC will review it. They may contact you if they need additional information, though you may not hear from them immediately as the replacement credits service doesn't start until April 2027.

If HMRC agrees the delay has impacted your State Pension, they will:

Calculate a one-off payment based on the State Pension impact from the date you first contacted them until 6 April 2027
Make the payment from April 2027 when the replacement credits service opens

The payment covers the period between when you first reported the problem and April 2027, when the service becomes available and you can apply for the credits going forward.

Who should not report

If you haven't yet reached State Pension age and won't reach it before April 2027, you don't need to take any action now. You'll be able to apply for replacement credits when the service opens in April 2027, and the delay shouldn't affect your State Pension entitlement.

Sources

Report a financial loss from the delay to the replacement credits service

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.