A record number of grandparents are tapping into a little-known Government scheme that could add thousands of pounds to their state pension — simply for helping out with the school run or looking after the grandchildren.
New figures reveal a surge in claims for Specified Adult Childcare (SAC) credits, a scheme that allows family members who care for children under 12 to receive National Insurance (NI) credits — and potentially boost their pension by up to £6,600.
Data obtained via a Freedom of Information request by wealth firm Quilter shows 42,964 people applied for the scheme between October 2023 and September 2024 — a 43 per cent rise on the previous year and more than double the number seen four years ago.
In total, over 131,000 applications have been made in the past five years, with 104,433 successfully approved. The scheme is aimed at grandparents, aunts, uncles, and even older siblings who look after young relatives while the parents are at work. By transferring unused NI credits from the child benefit recipient — usually a parent — to the family carer, these relatives can build up the years needed to qualify for the full state pension.
For each year of credits transferred, the individual could gain an extra £330 annually in pension income from 2025/26. That adds up to nearly £6,600 over a 20-year retirement — a lifeline for those not in formal work.
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.”
