Grandparents who help look after their grandchildren could boost their state pension by claiming specified adult childcare credits (SACCs), according to an expert. The state pension amount depends on National Insurance (NI) contribution years, with at least 10 years needed for any payment and 35 years required for the full new state pension of £241.30 per week. Many people have gaps in their NI contributions due to reasons such as working abroad or unemployment without benefits.
How the Credits Work
Specified adult childcare credits allow a parent or guardian's Child Benefit NI credits to be transferred to an eligible family member, such as a grandparent, who provides care for a child under 12. The parent or guardian must not need the credits themselves. Only one credit is available per Child Benefit claim, regardless of the number of children, so if two grandparents care for two children, only one credit can be claimed, and the parent decides who receives it.
Application Data and Trends
A Freedom of Information request to HMRC, revealed by wealth manager Quilter, shows that 202,037 applications for SACCs were made between 2016-17 and 2024-25, with four in five (approximately 80%) approved. Applications have increased following media coverage, but many eligible grandparents may still be unaware of the option.
Expert Commentary
Jon Greer, head of retirement policy at Quilter, said: "For many people, securing the full state pension is a key foundation of later life income, and these credits can offer grandparents a relatively simple way to strengthen their entitlement while helping family with childcare." He added that the significant number of unsuccessful applications points to a need for clearer guidance on eligibility and the system's practical workings. "With childcare costs continuing to rise, grandparents are playing an increasingly important role in supporting working families. Ensuring they are able to access the pension benefits linked to that support remains an important part of the wider retirement system," Greer stated.
Eligibility and Impact
The credits are available to people who have not yet reached state pension age to fill gaps in their NI contributions. Applicants must have provided care for a child under 12 and ensured the parent or guardian does not need the credits. This mechanism helps grandparents boost their state pension entitlement without buying back missing NI years, which can be costly.
