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 the state pension age and provide childcare for your grandchildren, you might 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 indicates that each year of transferred credit could result in an additional £330 in state pension income per year by 2025/26, potentially adding up to nearly £6,600 over a 20-year retirement period.
To qualify for these credits, you must have been below the state pension age (currently 66) while caring for a child under 12 years old, or under 17 if the child has a disability. There is no minimum hourly requirement to qualify, meaning even one day of childcare per week may make you eligible. Claims can be backdated to 2011 if you have since stopped caring for the child.
It’s essential that the parent of the child is entitled to Child Benefit, as they will transfer their National Insurance Credit to the grandparent. This ensures that the parent continues to build their National Insurance record for retirement without affecting their state pension forecast. Not only grandparents but also aunts, uncles, or anyone providing regular childcare may be eligible to make a claim. To apply for Specified Adult Childcare Credits, you need to complete form CA9176 on GOV.UK, signed by both you and the transferring parent.
Recent data from a Freedom of Information request by Quilter to HMRC revealed that there were 42,964 applications for Specified Adult Childcare Credits between October 2023 and September 2024. Over the past five years, a total of 131,594 applications have been submitted, with 104,433 approvals. Jon Greer, head of retirement policy at Quilter, emphasized the importance of raising awareness about these credits, especially among lower-income families, to ensure that eligible individuals do not miss out on substantial pension benefits.