Grandparents assisting with childcare during the February half-term can potentially increase their state pension by £6,600. If you are below the state pension age and provide childcare for your grandchildren, you may be eligible for Specified Adult Childcare Credits, a form of National Insurance Credits that can help fill any gaps in your National Insurance record.
Research by Quilter indicates that each year of transferred credit could add £330 to your annual state pension income by 2025/26, potentially totaling nearly £6,600 over a 20-year retirement period. To qualify for these credits, you must have been below the state pension age (currently 66) when caring for the child, and the child must be under 12 years old, or under 17 if the child has a disability.
There is no minimum requirement for the number of hours spent caring for the child to qualify for the credits, meaning even if you looked after the child one day a week, you could still be eligible. Claims can be backdated to 2011, allowing you to claim even if you are no longer providing care.
To claim Specified Adult Childcare Credits, you need to fill out form CA9176 on GOV.UK and have both yourself and the parent transferring the credit sign the form. It is essential that the parent receiving Child Benefit is on track to build their National Insurance record for retirement to avoid any impact on their state pension forecast.
Aside from grandparents, other relatives like aunts, uncles, or regular caregivers can also make a claim for these credits. Most individuals require 35 qualifying National Insurance years to receive the full new state pension, valued at £230.25 per week, with a minimum of ten years needed to receive any amount.
Recent data revealed that over the past five years, 131,594 applications for Specified Adult Childcare Credits have been submitted, with 104,433 approvals. Jon Greer from Quilter emphasized the importance of raising awareness about these credits, particularly among lower-income families and communities where gaps in National Insurance records are more common.