Grandparents who assist in caring for their grandchildren during the February half-term can potentially increase their state pension by £6,600. If you are below state pension age and provide childcare for your grandchildren, you may be eligible for Specified Adult Childcare Credits. These credits are a form of National Insurance Credits designed to fill any gaps in your National Insurance record.
Research conducted by Quilter indicates that each year of transferred credit could boost state pension income by £330 for the year 2025/26, potentially accumulating up to nearly £6,600 over a 20-year retirement period. To qualify for these credits, you must have been under state pension age (currently 66) while caring for a child under the age of 12, or 17 if the child has a disability.
There is no minimum hourly requirement to qualify for Specified Adult Childcare credits, meaning even occasional childcare providers may be eligible. Claims can also be backdated to 2011, allowing individuals to claim even if they have ceased providing care. The child’s parent must be receiving Child Benefit to transfer the National Insurance Credit to the grandparent.
It is essential for the parent to ensure their own National Insurance record is not affected to secure their state pension entitlement. Besides grandparents, other family members like aunts, uncles, or regular caregivers may also be eligible to make a claim for these credits.
Most individuals require 35 qualifying National Insurance years to receive the full new state pension, which amounts to £230.25 weekly. Filling out form CA9176 on GOV.UK is necessary to claim Specified Adult Childcare Credits, with signatures from both the claimant and the parent transferring the Credit.
Statistics from a Freedom of Information request by Quilter to HMRC reveal 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 successfully approved.
Jon Greer, head of retirement policy at Quilter, emphasized the importance of raising awareness about these credits, highlighting that each year of credit can significantly impact state pension income. He stressed the need for increased government efforts to inform lower-income families and communities where National Insurance record gaps are more prevalent.