What Are National Insurance Credits and Do I Qualify?

Introduction

National Insurance credits help protect your contribution record during periods when you're unable to work or pay National Insurance—such as when you're unemployed, ill, caring for someone, or raising children. These credits fill gaps in your record to ensure you still qualify for your State Pension and, in some cases, other benefits. Understanding whether you qualify for credits and how to claim them can safeguard your future entitlements.

What are National Insurance credits?

National Insurance credits are a way to maintain your contribution record without actually paying National Insurance contributions. They're designed to protect people during life events that prevent them from working or earning enough to build up a full National Insurance record.

There are two types of credits:

Class 1 credits count towards your State Pension and may help you qualify for certain other benefits, such as New Style Jobseeker's Allowance.

Class 3 credits count towards your State Pension only.

Credits help you build 'qualifying years'—years where you've paid or been credited with enough National Insurance to count towards your State Pension. You need 35 qualifying years for the full new State Pension.

When you're looking for work

If you're unemployed and actively seeking work, you may qualify for Class 1 credits.

You receive credits automatically if you're on Jobseeker's Allowance and not in education or working 16 hours or more per week.

If you're unemployed and looking for work but not claiming Jobseeker's Allowance, you can still get Class 1 credits by contacting your local Jobcentre Plus to claim them.

When you're ill, disabled or on sick pay

Class 1 credits are available automatically if you're receiving Employment and Support Allowance (ESA), Unemployability Supplement, or Unemployability Allowance.

If you're not on ESA but satisfy the conditions for it, you can apply for New Style ESA to receive Class 1 credits.

If you're on Statutory Sick Pay and don't earn enough to make a qualifying year, you need to apply for Class 1 credits by writing to PT Operations North East England, HM Revenue and Customs, BX9 1AN, United Kingdom. Include your National Insurance number and explain when the credits are for and why you're eligible.

Maternity, paternity and adoption

If you're receiving Maternity Allowance, you get Class 1 credits automatically.

For those on Statutory Maternity, Paternity or Adoption Pay, or Additional Statutory Paternity Pay who don't earn enough to make a qualifying year, you'll need to apply for Class 1 credits. Write to PT Operations North East England at the address above, including your National Insurance number and details of your circumstances.

Parents and guardians

Parents and guardians can receive Class 3 credits in several situations.

If you're registered for Child Benefit for a child under 12 (even if you don't actually receive the payment because of the High Income Child Benefit Charge), you get Class 3 credits automatically. This applies to situations from 6 April 2010 onwards.

You can transfer these credits to your spouse or partner who lives with you if you've already paid a full year's National Insurance contributions (a qualifying year). You'll need to apply to transfer these Class 3 credits between parents or guardians.

Foster carers and kinship carers in Scotland can apply for Class 3 credits for periods from 6 April 2010 onwards.

For periods before 6 April 2010, different rules applied involving Home Responsibilities Protection (HRP). If you were a parent or guardian who received Child Benefit for a child under 16 between 6 April 1978 and 5 April 2010 but didn't get HRP automatically, you can claim HRP to receive Class 3 credits.

Carers

If you're caring for someone, you may qualify for credits even if you're not claiming benefits.

You receive Class 1 credits automatically if you're getting Carer's Allowance payments or, in Scotland only, Carer Support Payment.

If you're caring for one or more sick or disabled person for at least 20 hours a week but not receiving Carer's Allowance or Carer Support Payment, you can apply for Class 3 carer's credits.

Grandparents and other family members

Grandparents and other eligible family members over 16 but under State Pension age can apply for Specified Adult Childcare Class 3 credits if they care for a child under 12. This applies to care provided at any time since 6 April 2011.

To qualify, the child's parent or guardian must be receiving Child Benefit and must agree to transfer the credits to you.

Universal Credit

If you receive Universal Credit, you get Class 3 credits automatically.

Training courses

If you're over 18 and Jobcentre Plus has sent you on a government-approved training course lasting no longer than one year, you receive Class 1 credits automatically.

If you're over 18 and on a government-approved training course lasting no longer than one year but weren't sent by Jobcentre Plus, you can apply for Class 1 credits by writing to PT Operations North East England at the address provided earlier.

How to check your credits

You can check your National Insurance record online to see if you have credits and identify any gaps in your contribution history. This helps you understand whether you need to take action to protect your State Pension entitlement.

If you've applied for credits but they appear incorrectly on your record, contact the office where you applied. You can ask HMRC online if you have questions about National Insurance credits, or phone the National Insurance helpline if you cannot use the online service.

If you disagree with a decision

If HMRC makes a decision about your National Insurance credits that you disagree with, you can challenge it. This process is called asking for mandatory reconsideration.

Sources

• National Insurance credits

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