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Press comment: Gov need to simplify system in review of child benefit forms

06/06/2019

If you’re covering the review of the High Income Child Benefit system please see the following comment from Jon Greer, head of retirement policy at Quilter:

Jon Greer“The introduction of changes to benefits and taxes inevitably leads to complication and confusion. It’s right that HMRC take stock after the fact and the £1.8 million in refunds to families is welcome.

“However, the challenges around this complex system aren’t going anywhere.  Claiming child benefit counts as a National Insurance credit, even when the benefit is wiped out by tax charges. If a mother is not working and does not claim child benefit she will lose rights under the state pension at a rate of £231 a year for every uncredited year.

“At the moment high earners who don’t think child benefit is for them need to make sure they always complete the child benefit: claim form (CH2) to retain NI credits. That seems counterintuitive and is probably the last thing on their mind when dealing with a newborn.

“Just to make things more confusing the 516,000 families who have opted out of the system are fine, so it’s just new parents who need to fill out the form. The Government needs to simplify its system so busy parents don’t have to spend hours trying to understand needlessly convoluted benefit rules and so it’s encouraging to see they are looking at the system and improve communication.”

For more information contact

Kathleen Gallagher023 8072 629307990 004932kathleen.gallagher@quilter.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £95.3 billion in customer investments (as at 31 March 2020).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Investment Platform in 2020)
  • Quilter International (previously Old Mutual International)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.