More than half of UK grandparents will be providing childcare over the summer holidays – but many are unaware they can claim a financial boost worth thousands of pounds
Grandparents who help care for their grandchildren over the summer holidays could be eligible for a significant pension boost – worth up to £6,600.
Many are unaware they can claim financial recognition through Specified Adult Childcare Credits, a form of National Insurance (NI) credit that contributes toward qualifying for the full state pension – currently worth £230.25 per week. To receive the full amount, individuals need 35 years of NI contributions.
With schools set to break up from Wednesday, July 23, and some children starting holidays even earlier, the demand on grandparents is rising.
Research from MyVoucherCodes shows that 53% of grandparents with grandchildren under 18 will be providing childcare this summer. The average daily spend per child has increased to £21, up from £15.80 last year.
Specified Adult Childcare Credits allow family members who care for a child under 12 (or under 17 if they have disabilities) to receive NI credits if the child’s parents receive Child Benefit.
Each year of credited care can add approximately £330 to your annual state pension. Over a 20-year retirement, that’s worth nearly £6,600.
Yet uptake remains low – only 104,433 people have claimed the credits in the past five years, and just 42,962 applied last year, despite a high 78% approval rate.
Who can claim?
You may be eligible if:
- You care for a child under 12 (or under 17 if they’re disabled).
- The child’s parents receive Child Benefit.
- You are below the state pension age.
- You live in England, Scotland, Wales, or Northern Ireland (not the Channel Islands or Isle of Man).
It’s important to note that only one credit per Child Benefit claim can be transferred, no matter how many children are cared for.
How to claim
To apply for this tax year’s credits, wait until October 31, once HMRC confirms the parent or main carer has a qualifying NI year.
Here’s what you’ll need:
- Child’s details
- Dates you provided care
- Contact details of the Child Benefit recipient
- Signed declaration from both you and the main carer
Then, complete the CA9176 form online through the gov.uk website.
You can also backdate claims to 2011, when the credits were introduced.
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