NIM41245 - Non-benefit credits: post 1975 credited earnings: Autocredits

Regulation 9A of the Social Security Credits Regulations 1975

The above regulation allows for credits for persons approaching pension age. These credits, known as "autocredits" because they are given automatically, were made available to men from 6 April 1983 for the tax year in which they reach age 60 and the following 4 tax years. The credits are awarded to ensure that each of those years is a qualifying year for benefit purposes.

Autocredits are not awarded for the year in which a man reaches age 65 or any subsequent tax years.

A self-employed earner will only receive autocredits for a year in which he is either liable to pay Class 2 contributions in respect of any weeks(s) or has been given an exception from liability because of small earnings. A credit will be given for any week(s) for which he is not liable.

Autocredits are not awarded for any tax year in which a man is absent from Great Britain or Northern Ireland for more than 182 days.

From 2010 onwards, autocredits are being phased out in line with the equalisation of State Pension age (SPA) for men and women. Women will not receive the credits for the years between the year in which they reach age 60 and their SPA. Men will only receive the credits from the year in which they reach the SPA of a woman born on the same day.

For example:

• A woman born between 6 October and 5 November 1950 reaches SPA on 6 May 2011. A man born between those dates will therefore be given autocredits for the four tax years from 2011-2012 to 2014-2015.
• A woman born between 6 September and 5 October 1954 reaches SPA on 6 March 2019. A man born between those dates will therefore be given autocredits for only the 2018-2019 year.
• A woman born between 6 October and 5 November 1954 reaches SPA on 6 May 2019. A man born between those dates will not be entitled to autocredits because 6 May 2019 is in the year in which he reaches age 65 and autocredits cannot be given for that year.

The last year for which autocredits will be given is therefore the 2018-2019 year.