You are here: Home - Retirement - Retirement planning - News -

Grandparents on childcare duty urged to claim credits for pension boost

Written by: Paloma Kubiak
Grandparents who provide childcare for their grandchildren are urged to claim a national insurance credit to ensure they receive the maximum state pension.

To qualify in full for the new State Pension (retirement on or after 6 April 2016), retirees need to have 35 years’ worth of National Insurance Contributions (NICs).

Any adult under state pension age who is the main carer for a child under 12 can apply for special credits, called Specified Adult Childcare credits.

This ensures any gaps in your National Insurance record are filled so boosts your chances of getting the full state pension (currently £164.35 per week or £8,546.20 a year). Further, the credits can be backdated to 6 April 2011 when the scheme came into effect.

Around 100,000 grandparents of working age are eligible to claim the credit, but minister for pensions and financial inclusion, Guy Opperman, confirmed just 19,000 have benefitted.

This means 81,000 grandparents are missing out which could impact their state pension for years to come.

‘Credits are the least this unsung workforce deserves’

Rachael Griffin, tax and financial planning expert at Old Mutual Wealth, said: “With childcare costs surging to become a disproportionate amount of people’s salary, grandparents often throw families a much needed lifeline by taking on the care.

“However, the vast majority of this workforce are not seizing what they rightly deserve. This is a worrying figure, given the option has been in place for over seven years.

“While spending your days taking trips to the zoo and having picnics in the park may sound like a holiday, taking care of young children while doing so make it’s more akin to working a full-time job. National Insurance credits are the least this unsung workforce deserves.”

If you think you’re eligible for the credits, fill in the application for Specified Childcare Credits (CA9176) on the government’s site.

Related: See How the government is trying to cut your summer holiday childcare bill for more information.

There are 1 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

How to get 7% interest without tying up your savings for years

You don't have to lock your money away for years to get above-average returns on your savings.
How to get 7% interest without tying up your savings for years

Government looks to ‘abolish’ leasehold this year

Michael Gove, secretary of state for the Department for Levelling Up, Housing and Communities, has suggested t...
Government looks to 'abolish' leasehold this year

130 million old £1 coins still out there: what to do if you have one

An estimated 131 million old round £1 coins have yet to be returned to the Royal Mint, nearly three years afte...
130 million old £1 coins still out there: what to do if you have one

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week