Grandparents who regularly provide childcare could receive a boost to their State Pension thanks to a little-known HMRC rule, with the Christmas holidays approaching. Many grandparents step in to help look after their grandchildren, and this rule allows them to add money to their pension pot.
How Specified Adult Childcare Credits Work
Using Specified Adult Childcare Credits, grandparents can boost their State Pension if they regularly look after their grandchildren. Introduced in 2011, Class 3 National Insurance credits are usually received weekly by a child's parent or carer who is a Child Benefit recipient. However, these credits can be transferred to other family members for each week or part of a week that another relative cares for the child, as long as the parent agrees.
There are some caveats to be aware of before making a claim. Only one credit is available for each Child Benefit claim, even if there are multiple children on the same claim.
When and How to Apply
Now is the time to apply. Applications for the last tax year only open after October 31, which gives HMRC time to check that the parent already has a qualifying year on their National Insurance record.
You can apply if you are an eligible family member who provided care for a child under 12, you were aged 16 and over but under State Pension age when you provided care, you are ordinarily resident in the UK (but not the Channel Islands or the Isle of Man), the child's parent or main carer has claimed Child Benefit but does not need the credits themselves, and the child's parent or main carer agrees to your application.
The child's parent or main carer must countersign the form to confirm they agree that, for the stated period, you provided care for their child and can have the credits. More information is available on the government website.
