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 may be eligible for Specified Adult Childcare Credits. These credits are a form of National Insurance Credits designed to help fill any gaps in your National Insurance record. Research from Quilter indicates that each year of credited childcare can result in an extra £330 in state pension income annually by 2025/26, potentially accumulating to nearly £6,600 over a 20-year retirement period. To qualify, you must have been under state pension age (currently 66) when looking after the child, and the child must be under 12 years old (or under 17 if the child has a disability).
There is no minimum number of hours required to qualify for Specified Adult Childcare credits, making it possible to qualify even if you only cared for the child one day a week. Claims can also be backdated to 2011, allowing individuals to claim even if they have stopped caring for the child. The parent of the child must be entitled to Child Benefit to transfer the National Insurance Credit to the grandparent. It is essential for the parent to ensure that their own National Insurance record for retirement is not affected.
Eligibility is not limited to grandparents; aunts, uncles, or any individual regularly providing childcare may be eligible to make a claim. Most individuals require 35 qualifying National Insurance years to claim the full new state pension, which amounts to £230.25 per week. A minimum of ten years is typically needed to receive any pension benefits. To apply for Specified Adult Childcare Credits, individuals must complete form CA9176 on GOV.UK, with both the caregiver and the parent transferring the Credit signing the form.
An FOI request by Quilter to HMRC revealed that between October 2023 and September 2024, there were 42,964 applications for Specified Adult Childcare Credits. 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 value of these credits, highlighting that each year of credit is worth £330 towards the state pension. He urged the government to increase awareness of these credits, especially among lower-income families and communities where gaps in NI records are more common.