The National Insurance Replacement Credits Service (NIRCS) is finally on its way, although the launch date has now been pushed back from April 2026 to April 2027.
NIRCS is intended to help certain parents and carers fill gaps in their National Insurance (NI) record which could otherwise affect their State Pension entitlement.
Who could be eligible?
Parents and carers may be entitled to replacement National Insurance credits if:
- They were eligible for Child Benefit for a child under 12 from 7 January 2013
- They did not claim Child Benefit, for example because of the High Income Child Benefit Charge affecting a higher-earning partner
- As a result, they may have gaps in their National Insurance record which could reduce their State Pension entitlement
Not everyone in this situation will necessarily have gaps in their NI record. For example, if you were working during the period and already built up a qualifying year through National Insurance contributions, your State Pension record may not have been affected.
How much could the credits be worth?
At 2026/27 State Pension rates, each additional qualifying year could be worth around an extra £358 a year towards your State Pension, depending on your individual National Insurance record.
The value of State Pension entitlement may also increase in future years as State Pension rates are uprated.
Can claims be backdated?
Transitional arrangements will be put in place allowing eligible people to claim the new credits retrospectively as far back as 2013.
Following the transitional period, claims will generally only be able to go back six years.
For the majority of people with gaps in their National Insurance record, the delay to April 2027 should not cause a long-term issue, as they will still be able to apply for the relevant credits once the service becomes available.
Who could be affected by the delay?
Some individuals may, however, experience a short-term impact on their State Pension.
This is most likely to affect people who:
- Are already receiving their State Pension
- 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 this period.
What if the delay causes financial loss?
If you believe the delayed launch of NIRCS will cause you a financial loss, it may be possible to ask HMRC to review your circumstances.
If HMRC agrees that the delay has affected your State Pension entitlement, it will calculate a payment to reflect the impact from the date you contacted HMRC up to 6 April 2027.
Any payments are expected to be made after the National Insurance Replacement Credits Service is introduced.
What should you do?
If you think you may have gaps in your National Insurance record because you did not claim Child Benefit, it may be worth checking your National Insurance record and State Pension forecast.
If you are already receiving State Pension, or will reach State Pension age before April 2027, it may also be worth considering whether the delay could affect you financially.
If you are unsure how the changes could affect your circumstances, speak to your usual Thorne Widgery contact for further guidance.