Tens of thousands of grandparents could be missing out on a little-known pension perk that would boost their income in retirement. The high cost of childcare means increasing numbers of parents rely on relatives to look after their children so they can return to work. 

Who can claim? 

To claim the full new state pension, currently worth £185.15 a week, you need 35 years of National Insurance contributions. You can build up your record by paying National Insurance on your earnings during your working life or by claiming National Insurance credits. 
If you have children under the age of 12 and claim child benefit, you will automatically receive parents' credits, but if you have gone back to work you may not need them. If this applies to you, you are permitted to transfer your entitlement to a family member who helps with childcare who may have a gap in their own National Insurance record. 
Each year of credits is worth a year of National Insurance contributions or one-35th of the full state pension. 
Eligible family members include not only grandparents, but also aunts and uncles, siblings, cousins, parents who do not live with the child and the partners of those relatives. 
There is no minimum requirement for the number of hours of care provided. 

How to claim 

To apply for Specified Adult Childcare credits you will need to complete an application form.  
The application requires the: 
personal details of the applicant – the family member caring for the child 
child’s details and the periods of care 
personal details of the child’s parent (or main carer) – the Child Benefit recipient 
applicant and the parent must both sign their declarations on the application 
Specified Adult Childcare credits can be awarded retrospectively, to 6 April 2011 at the earliest. 
For more information , call the team at Holmes and Company on 01525 851101 or contact us here 
The tax tip is provided for general guidance only; further advice should be sought, for specific issues. 
Share this post:
Our site uses cookies. For more information, see our cookie policy. Accept cookies and close
Reject cookies Manage settings