Grandparents who assist in caring for their grandchildren during the February half-term stand to increase their state pension by £6,600. If you are below state pension age and provide childcare for your grandchildren, you may be eligible for Specified Adult Childcare Credits. These credits, a form of National Insurance Credits, can help fill any gaps in your National Insurance record.
Research by Quilter indicates that each year of transferred credit could add up to £330 in additional state pension income by 2025/26, potentially totaling almost £6,600 over a 20-year retirement period. To qualify, you must have been below state pension age (currently 66) when caring for the child, and the child must be under 12, or under 17 if they have a disability.
There is no minimum hourly requirement to qualify for Specified Adult Childcare credits, so even if you cared for the child one day a week, you may still be eligible. Claims can be backdated to 2011, allowing you to claim even if you have stopped caring for the child.
To receive these credits, the parent of the child must be entitled to Child Benefit, as they will transfer the usual National Insurance Credit to the grandparent. It is crucial for the parent to ensure they are still building their National Insurance record for their retirement income.
Apart from grandparents, aunts, uncles, or any individual regularly caring for a child may also make a claim. Most individuals need 35 qualifying National Insurance years to receive the full new state pension, which is currently valued at £230.25 per week, with a minimum requirement of ten years to receive any amount.
To apply for Specified Adult Childcare Credits, you must fill out form CA9176 on GOV.UK, with both you and the parent transferring the Credit signing the form. Recent data from a Freedom of Information request by Quilter to HMRC shows a significant number of applications for these credits have been made and approved in the past years.
Jon Greer, head of retirement policy at Quilter, emphasized the importance of raising awareness about these credits, as many eligible individuals might be missing out on substantial pension benefits due to lack of awareness or understanding of the application process.