Grandparents who assist in caring for their grandchildren during the February half-term could potentially increase their state pension by up to £6,600. If you are below the state pension age and provide childcare for your grandkids, 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.
Recent research from Quilter reveals that each year of transferred credit could result in an extra £330 in state pension income for 2025/26, potentially totaling almost £6,600 over a 20-year retirement period. To qualify, you must have been below the state pension age (currently 66) when caring for the child, who must be under 12 years old, or under 17 if the child has a disability.
There is no minimum hourly requirement to qualify for Specified Adult Childcare credits, so even if you cared for the child only one day a week, you may still be eligible. Claims can also be backdated to 2011, allowing you to potentially claim even if you are no longer providing care.
The child’s parent must be receiving Child Benefit to transfer the National Insurance Credit to you. It is crucial for the parent to ensure they are still building their own National Insurance record for retirement to avoid any impact on their state pension forecast.
It’s not just grandparents who can benefit; relatives like aunts, uncles, or anyone regularly caring for a child may also make a claim. To apply for Specified Adult Childcare Credits, you need to fill out form CA9176 on GOV.UK, signed by both you and the parent transferring the credit.
Recent data obtained by Quilter from HMRC shows a significant number of applications for Specified Adult Childcare Credits, with over 40,000 applications between October 2023 and September 2024. Over the last five years, more than 131,000 applications have been submitted, with a majority of them successfully approved.
Jon Greer, head of retirement policy at Quilter, emphasized the value of these credits, with each year of credit amounting to £330 towards the state pension. He highlighted the need for increased awareness of these benefits, especially among lower-income families and communities where National Insurance record gaps are more common.