Grandparents who assist in caring for their grandchildren during the February half-term could potentially 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, categorized as National Insurance Credits, can help fill gaps in your National Insurance record. Recent research by Quilter indicates that each year of transferred credit could add around £330 to your state pension annually by 2025/26, accumulating to nearly £6,600 over a 20-year retirement period.
To qualify, you must have been under state pension age 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 hourly requirement to be eligible for Specified Adult Childcare credits, allowing even those who cared for a child one day a week to qualify. Claims can be backdated to 2011, enabling individuals who have stopped childcare responsibilities to still claim benefits.
To apply for Specified Adult Childcare Credits, you need to complete form CA9176 on GOV.UK, signed by both you and the parent transferring the credit. Eligibility is not limited to grandparents; other family members like aunts, uncles, or anyone regularly caring for a child can also make a claim. It’s essential for the parent transferring the credit to be receiving Child Benefit to ensure their own National Insurance record and state pension forecast are unaffected.
A recent Freedom of Information request revealed that there were 42,964 applications for Specified Adult Childcare Credits between October 2023 and September 2024. Over the past five years, a total of 131,594 applications have been submitted, with 104,433 approved. Jon Greer, head of retirement policy at Quilter, emphasized the importance of raising awareness about these credits, especially among lower-income families and communities where gaps in National Insurance records are common.