Grandparents who look after their grandchildren during this October half term could increase their state pension by thousands of pounds. The arrangement involves parents transferring unused National Insurance Credits to grandparents to fill gaps in their National Insurance record.
There is no minimum number of hours required to qualify, and claims can be backdated to 2011. This means grandparents who no longer provide childcare may still be eligible. Each extra qualifying year can raise a recipient's state pension by around £350 per year, according to Quilter, potentially adding more than £7,000 over a typical retirement.
Who Can Claim Specified Adult Childcare Credits
To claim Specified Adult Childcare Credits, the grandparent must have been under state pension age while caring for the child. The state pension age is currently 66 and rising to 67. The child must have been under 12, or under 17 if they have a disability.
The parent must be entitled to Child Benefit, as they transfer the associated National Insurance Credit to the grandparent. Parents should check their own state pension forecast to ensure they do not need the credit themselves, particularly if they have gaps in their National Insurance record.
How to Apply and Other Eligible Relatives
Most people need 35 qualifying National Insurance years to receive the full new state pension, though some need more. A minimum of ten years is typically required to receive any state pension. Other relatives, such as aunts, uncles, or anyone who regularly looks after a child, can also qualify for the credits.
Quilter notes that Specified Adult Childcare Credits could increase the state pension by £328 annually, amounting to over £6,000 across a standard retirement. The firm adds that 123,138 people have successfully claimed the credits. To apply, the parent and grandparent must complete form CA9176 on GOV.UK, and both parties need to sign it.
