Grandparents who assist in caring for their grandchildren during the upcoming 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 grandkids, you may be eligible for Specified Adult Childcare Credits. These credits are a form of National Insurance Credits that can help fill any gaps in your National Insurance record.
Research conducted by Quilter reveals that each year of transferred credit can result in an additional £330 in state pension income by 2025/26, potentially accumulating to nearly £6,600 over a 20-year retirement period. To qualify, you must have been under the 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 requirement for hours spent caring for the child to be eligible for Specified Adult Childcare credits, making it possible to qualify even if you looked after the child only one day a week. Claims can also be backdated to 2011, allowing you to claim even if you are no longer providing care.
To apply for Specified Adult Childcare Credits, you need to fill out form CA9176 on GOV.UK, and both you and the parent transferring the credit must sign the form. It’s essential for the parent to be receiving Child Benefit as they will be transferring their National Insurance Credit to you.
Besides grandparents, other relatives like aunties, uncles, or anyone regularly caring for a child may also be eligible to make a claim. Most individuals require 35 qualifying National Insurance years to receive the full new state pension, which amounts to £230.25 per week. A minimum of ten years is typically needed to receive any state pension benefits.
Quilter’s Freedom of Information request to HMRC indicates 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 being successfully approved.
Jon Greer, head of retirement policy at Quilter, emphasized the importance of raising awareness about these credits, especially among lower-income families and communities where gaps in National Insurance records are more common.