NI Credits

What Are NI Credits?

National Insurance credits are a way of protecting your NI record when you are unable to make contributions through paid work. They fill what would otherwise be gaps in your record, ensuring you continue to build entitlement to the State Pension and certain other benefits.^[1]

Credits work by counting towards your qualifying years as if you had paid NI contributions. They are free — you do not pay anything to receive them.

Automatic NI Credits

The following credits are awarded automatically, without you needing to apply:^[1]

Child Benefit and NI Credits

One of the most important sources of NI credits is Child Benefit. If you claim Child Benefit for a child under 12, you automatically receive NI credits for that tax year.^[1]

If both parents are working and already have qualifying years through employment, the Child Benefit NI credit may not be needed by the claimant. In that case, it can be transferred to another family member through Specified Adult Childcare credits (see below).

Carer’s Credit

Carer’s Credit is available if you care for one or more people for at least 20 hours per week, but do not qualify for Carer’s Allowance. The person you care for must receive a qualifying benefit such as:^[2]

• Attendance Allowance
• Disability Living Allowance (middle or highest rate care component)
• Personal Independence Payment (daily living component)
• Adult Disability Payment (Scotland) at the standard or enhanced rate
• Armed Forces Independence Payment

Unlike Carer’s Allowance, Carer’s Credit is not a payment — it is simply an NI credit added to your record. You need to apply using form CF411A (available on GOV.UK).

Specified Adult Childcare Credits

This credit allows a parent to transfer their Child Benefit NI credit to another family member who looks after their child. This is particularly useful for grandparents or other relatives who provide childcare.^[3]

The conditions are:

• The child must be under 12
• The parent claiming Child Benefit must already have a qualifying year from employment or self-employment (so they do not need the credit themselves)
• The family member must be a UK resident and over 16
• The parent must apply using form CA9176

Credits When Claiming Benefits

If you are claiming benefits due to unemployment, illness, or disability, you generally receive NI credits automatically:^[1]

• Jobseeker’s Allowance (JSA) — Class 1 credits for each week you are claiming (both contribution-based and income-based)
• Employment and Support Allowance (ESA) — Class 1 credits while in the assessment phase and support group
• Universal Credit — Class 3 credits, provided you meet certain conditions
• Statutory Sick Pay — Class 1 credits for weeks of sickness

Credits for Jury Service and Other Activities

You can also receive NI credits for:

• Jury service — Class 3 credits for the duration of your service
• Wrongful imprisonment — credits may be backdated
• Approved training courses — Class 1 credits while on a government-approved training course

Do You Actually Need Credits?

NI credits only matter if you do not already have enough contributions in a given tax year to make it a qualifying year. If you are employed and earning above the Lower Earnings Limit throughout the year, your contributions already give you a qualifying year — credits are irrelevant for that year.

Credits become important when you have periods out of work, or when your earnings are very low.

Further Reading

• NI and the State Pension — how qualifying years build your pension
• What Is National Insurance? — overview of the NI system
• Voluntary Class 2 Contributions — another way to protect your NI record
• Your National Insurance Number — how to find and use your NI number