Grandparents who assist in caring for their grandchildren during the February half-term could potentially increase their state pension by £6,600. If you are below state pension age and provide childcare for your grandkids, you may be eligible for Specified Adult Childcare Credits. These credits, a form of National Insurance Credits, can help fill any gaps in your National Insurance record.
Research from Quilter indicates that each year of transferred credit can add £330 in extra state pension income by 2025/26, potentially totaling almost £6,600 over a 20-year retirement period. To qualify, you must have been below state pension age (currently 66) when caring for the child, and the child must be under 12 years old, or under 17 if they have a disability.
There is no minimum hour requirement for Specified Adult Childcare credits, so even if you looked after the child only one day a week, you may still qualify. Claims can be backdated to 2011, allowing you to claim even if you are no longer providing care. The parent must be receiving Child Benefit to transfer the National Insurance Credit to the grandparent.
It’s essential for the parent to ensure they are still building their own National Insurance record for retirement to avoid any impact on their state pension forecast. Other relatives, such as aunts or uncles, who regularly care for a child may also be eligible to make a claim.
Most individuals need 35 qualifying National Insurance years to receive the full new state pension, valued at £230.25 weekly. Ten years of contributions are typically required to receive any state pension. To claim Specified Adult Childcare Credits, you must fill out form CA9176 on GOV.UK, signed by both you and the parent transferring the credit.
Recent data from Quilter revealed that there were 42,964 applications for Specified Adult Childcare Credits between October 2023 and September 2024, with a total of 131,594 applications submitted in the past five years, of which 104,433 were approved.
Jon Greer, head of retirement policy at Quilter, emphasized the importance of raising awareness about these credits, as each year of credit can significantly impact state pension income. Many eligible grandparents may be missing out on substantial funds due to lack of awareness on eligibility and application procedures. Greer called for increased government efforts to inform lower-income families and communities about these credits.