Grandparents offering childcare during the February half-term could potentially increase their state pension by up to £6,600. If you are below state pension age and provide care for your grandchildren, you may be eligible for Specified Adult Childcare Credits, a form of National Insurance Credits that can fill gaps in your record. Research indicates that each year of credit is valued at £330 in additional state pension income, potentially resulting in nearly £6,600 over a 20-year retirement period.
To qualify for these credits, you must have been below state pension age when caring for the child, and the child must be under 12 years old (or under 17 with a disability). There is no minimum hourly requirement to qualify, meaning even occasional caregivers may be eligible. Claims can be backdated to 2011, allowing for retroactive entitlement.
To apply for Specified Adult Childcare Credits, fill out form CA9176 on the GOV.UK website, signed by both you and the parent transferring the credit. Other relatives besides grandparents, such as aunts or uncles, who regularly care for a child may also be eligible. It is crucial for the parent transferring the credit to ensure their own National Insurance record is unaffected to safeguard their state pension forecast.
A recent Freedom of Information request revealed that over 42,000 applications for these credits were made between October 2023 and September 2024, with a total of 131,594 applications in the past five years, of which 104,433 were approved. Jon Greer, head of retirement policy at Quilter, emphasized the value of these credits, urging greater awareness among eligible individuals to prevent missing out on substantial pension benefits.