Caring for your grandchildren this summer? You may be able to boost state pension
Grandparents could boost state pension payments by filling gaps for free
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Grandparents who are helping take care of their grandchildren may be able to boost their state pension by thousands of pounds.
To benefit, eligible people will need to apply for the National Insurance credits known as Specified Adult Childcare credits.
Other family members who care for a child under 12 while their parents are at work may also be able to apply for the credits.
Pete Hykin, CEO and co-founder at workplace pension provider Penfold, told GB News the scheme is “not widely known, yet incredibly beneficial to grandparents providing childcare”.
People may be able to backdate the application for credits to boost their state pension
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To get the credit, the parent, who typically gets Child Benefit and therefore National Insurance credits, signs over their credits to the grandparent or other family member providing the care.
The caregivers must be or have been over 16 and under state pension age when they provide or provided the care for the child.
They must also live in the UK but not the Channel Islands or the Isle of Man.
Mr Hykin warned: “It's important to note that these credits aren't available for family members who are working or already receiving credits from elsewhere.
“They're specifically designed for those providing care.”
Liz Hunter, director at Money Expert, told GB News: “If you’re a grandparent who’s been looking after a grandchild or grandchildren under 12, you’re likely to be able to claim additional credits.
“The government says this is because ‘such grandparents are contributing to society just as much as someone in a paid job and should therefore be entitled to the same protection for their state pension as if they were in work’.
“You can receive one Class 3 National Insurance credit for each week (or part week) that you provided care for your grandchild.”
Ms Hunter added: “There’s no rule in terms of minimum hours rule, so even if you simply dropped a child at school and picked them up, you could still qualify.
“You can also backdate your credits if you’d like to, so it’s a great opportunity to bump up your record.”
Eligible people need to apply for extra credits via the government website, and those with gaps in their National Insurance record are urged to check if they qualify.
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Family members such as aunties and uncles who provide care may be able to apply for the state pension boost
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HM Revenue and Customs (HMRC) says applicants must wait until October 31 after the end of the tax year they want to apply for.
Ms Hunter said: “Some credits need to be added manually, so it’s worth checking to see if you’re eligible for any additional credits, as they may increase the amount of state pension you receive.”
People who already have a full National Insurance record and are on track to get the full state pension won’t be able to top it up further.
It may also be possible to claim National Insurance credits for caring for a sick or disabled person.
People who got statutory sick pay for a long period of time, were unemployed and actively looking for work, or were on statutory maternity pay may be eligible for credits.
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