Grandparents can boost state pension by claiming childcare credits
Grandparents who look after their grandchildren this summer could increase their state pension by claiming Specified Adult Childcare Credits (SACC). According to wealth manager Quilter, nearly 160,000 applications for SACC have been approved over the past decade. The scheme allows parents to transfer spare National Insurance (NI) credits to a family member caring for a child under 12. This lets grandparents fill gaps in their NI record for free, instead of buying missing years.
The full new state pension is currently £241.30 per week, requiring about 35 qualifying years of NI contributions. Those who took time out of work without claiming benefits may have gaps, reducing their pension. Claiming SACC can add roughly £350 per year to your pension for each qualifying year, potentially worth £7,000 over a typical retirement. Buying a missing NI year voluntarily costs more than £900, making the scheme a significant saving.
How to apply and common pitfalls
Despite a 40% surge in applications, one in five claims is rejected by HMRC. Rejections often occur when the grandparent already has a full NI record, or the parent has opted out of Child Benefit. To transfer credits, the parent must be registered for Child Benefit, even if they do not receive it due to high earnings. The grandparent must be under state pension age when the care took place. There is no minimum hourly requirement, and claims can be backdated to April 2011.
To apply, check your state pension forecast on the HMRC website. If you have missing NI years and have cared for a child under 12 since 2011, download form CA9176 from GOV.UK. The child's parent or guardian must also sign the form. For help, call the National Insurance helpline on 0300 200 3500.
Energy price cap rise: act now to save
Separately, households on standard variable energy tariffs face a 13% price cap rise from July 1, adding about £221 per year to average bills. Ofgem's price cap increase is the biggest since the energy crisis, according to experts. Switching to a fixed-rate tariff can lock in lower rates. Comparison site Uswitch reports 27 fixed deals cheaper than the new cap, with the best saving £284 per year. Analysts expect further increases in October, so acting now is crucial.
Use comparison sites like Compare the Market, MoneySavingExpert, or Uswitch to find deals. Under Ofgem rules, you can switch up to 49 days before your current fixed tariff ends without exit fees.
