Grandparents providing childcare assistance during the February half-term may increase their state pension by up to £6,600. If you are below the state pension age and care 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 by Quilter indicates that each year of transferred credit could boost state pension income by £330 for 2025/26, potentially adding nearly £6,600 over a 20-year retirement period. To qualify, you must have been under the state pension age (currently 66) when looking after a child under 12, or 17 if the child has a disability.
There is no minimum hourly requirement to qualify for Specified Adult Childcare credits, allowing eligibility even for those caring for a child one day a week. Claims can be backdated to 2011, extending entitlement even after caregiving has ceased.
To claim, the child’s parent must be receiving Child Benefit to transfer the National Insurance Credit to the grandparent. Others besides grandparents, such as aunts, uncles, or regular caregivers, 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 per week. Form CA9176 on GOV.UK must be completed to claim Specified Adult Childcare Credits, with signatures required from both the claimant and the parent transferring the Credit.
Statistics from HMRC reveal that there were 42,964 applications for Specified Adult Childcare Credits between October 2023 and September 2024, with a total of 131,594 applications over the past five years, of which 104,433 were successfully approved.
Jon Greer from Quilter emphasized the importance of these credits, highlighting their value on state pensions and calling for increased awareness, especially among lower-income families and communities with common gaps in National Insurance records.