Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 29 February 2024 to Question 15683 on National Insurance: Foster Care, whether she has made an assessment of the potential merits of topping-up the National Insurance contributions of foster carers who were unable to work due to the rules that were in place before 2003.

Between 2003 and 2010, foster carers could claim Home Responsibilities Protection (HRP) to protect their National Insurance record. Foster carers who did not claim HRP at the time can make a retrospective claim now – guidance is available at: https://www.gov.uk/home-responsibilities-protection-hrp

There are no plans to extend this period to allow foster carers to claim HRP before 6 April 2003.

For periods prior to 2003, foster carers could have paid voluntary NICs to protect their National Insurance (NI) record subject to the normal time limits. Time limits for voluntary NICs are an important feature of the NI system, which operates on a pay as you go basis; the National Insurance contributions (NICs) paid now are used to fund today’s contributory benefits.

There are no plans to allow foster carers to pay voluntary NICs for periods before 2003 to top up their NI records, outside of the existing rules for voluntary NICs. This maintains fairness for other individuals who have paid voluntary NICs within the required time limits.

At Spring Budget 2023, the government increased the amount of income tax relief available to foster carers and shared lives carers. The threshold of income at which qualifying carers begin paying tax on care income was increased to £18,140 per year plus £375 to £450 per person cared for per week for 2023-24 (the weekly amount range is based on age of the child or adult under care). Both the threshold and weekly amounts will then be index-linked from 2024-25 onwards, representing a tax cut worth approximately £450 per year on average