Grandparents who look after grandchildren under the age of 12 could be entitled to valuable National Insurance (NI) credits that may boost their state pension, according to wealth manager Quilter. The credits, known as Specified Adult Childcare Credits (SACCs), are designed to help people below state pension age fill gaps in their NI records and strengthen their retirement income.
Rising Applications for Childcare Credits
Quilter obtained figures from HM Revenue and Customs (HMRC) through a freedom of information (FOI) request, revealing that 202,037 applications for SACCs were made between the tax years 2016-17 and 2024-25. Of these, 79% (159,116) were approved, highlighting the significant role the credits play in boosting retirement incomes.
Applications surged from 29,967 in 2022-23 to 42,964 in 2023-24. The HMRC response noted that the notable increase followed media coverage that raised awareness of the scheme.
How the Credits Work
The credits transfer the weekly NI credit that a parent or carer receives as a child benefit recipient to an eligible family member, such as a grandparent. People may be entitled to the credits if they provided care for a child aged under 12, and the parent or main carer does not need the NI credits themselves.
Quilter emphasised the importance of maintaining a child benefit claim, as opting out entirely means there are no NI credits available to transfer. The credits can be particularly valuable for addressing gaps in NI records that often arise from time spent out of the workforce, which disproportionately affects women.
Expert Comment on Eligibility and Guidance
Jon Greer, head of retirement policy at Quilter, said: “For many people, securing the full state pension is a key foundation of later life income, and these credits can offer grandparents a relatively simple way to strengthen their entitlement while helping family with childcare.”
“However, the data also highlights that a significant number of applications remain unsuccessful, which points to a need for clearer guidance around eligibility and how the system works in practice,” Greer added.
He continued: “With childcare costs continuing to rise, grandparents are playing an increasingly important role in supporting working families. Ensuring they are able to access the pension benefits linked to that support remains an important part of the wider retirement system.”
Reasons for Rejection
Quilter noted that reasons for rejection may include applicants already having a qualifying year of NI, often because they are still working or receiving other credits. The firm urged grandparents to check their eligibility and seek advice if needed, especially as many prepare to help with childcare over the summer holidays.
