Grandparents providing childcare for their grandchildren may be eligible for a significant State Pension boost through a scheme called Specified Adult Childcare. The initiative, administered by HM Revenue and Customs (HMRC), allows the transfer of National Insurance credits from the Child Benefit claimant to a family member caring for a related child under 12, or under 17 if the child has a disability.
Each additional National Insurance credit adds approximately £303 per year to the full New State Pension. Over a typical 20-year retirement, this could amount to a boost of more than £6,000. The credit is available for each week or part week of care, but only one credit per Child Benefit claim—regardless of the number of children on that claim.
The scheme is designed for grandparents looking after children whose parents are working, meaning the parents do not need the National Insurance credits for their own pension. A backdated claim can be made as far back as April 6, 2011. During the pandemic, care provided remotely—by phone, text, or video call—also qualifies for the tax years 2019-20 and 2020-21.
To apply, the child's parent or main carer must counter-sign the application form, confirming that the grandparent is an eligible family member. The full New State Pension is currently worth £241.30 per week (£12,547 per year), requiring around 35 years of National Insurance contributions for the maximum amount. Those who were 'contracted out' may need more than 35 years.
Claims can be made for financial years from 2011/12 up to 2024/25, but applicants must wait until October 31 after the end of the relevant tax year. HMRC advises that the Child Benefit recipient should check their National Insurance record online before applying to ensure credits are available for transfer.
