A record number of grandparents are applying for a little-known government scheme that can boost their state pension by up to £6,600, new data reveals. The scheme, called specified adult childcare (SAC) credits, allows relatives who provide childcare for children under 12 to receive national insurance (NI) credits, which count towards building qualifying years for the state pension.
According to figures obtained by Quilter via a Freedom of Information request, applications for SAC credits have surged. Between October 2023 and September 2024, 42,964 people applied – a 43% increase on the previous year and more than double the number four years ago. Over the last five years, 131,594 applications were submitted, with 104,433 approved.
Jon Greer, head of retirement policy at Quilter, said: “Applications for specified adult childcare credits are surging as more families catch on to the fact that looking after grandchildren doesn’t just help with childcare but can also boost your retirement income.” Each year of transferred credit currently adds £330 in extra state pension income for 2025/26, which could translate into nearly £6,600 over a 20-year retirement.
To qualify, applicants must be family members such as grandparents, aunts, uncles, or older siblings providing care for a child under 12. The parent must receive child benefit and agree to transfer the credit. The applicant must be under state pension age (currently 66). Only one credit can be transferred per child benefit claim. Applications can be backdated to April 6, 2011.
Common reasons for rejection include the applicant already having a qualifying NI year or being the child benefit recipient themselves. Greer called for greater government outreach, saying: “We would welcome a renewed effort by the Government to raise awareness of these credits, particularly among lower-income families.” People can apply via form CA9176 on the government website, but must wait until 31 October after the relevant tax year.
