State Pension Credits for Grandparents

Do you look after your grandchildren to help with childcare?
Our Director Lisa Julian gives information on what to do if you are a grandparent missing out on a state pension boost.

If you are a grandparent looking after grandchildren so that their parents can go back to work, you could increase your state pension by applying for a credit.  This credit could entitle you to an extra £4500 (based on a 20 year retirement).

Childcare is expensive and many parents are finding that they are relying more on grandparents to look after children instead of putting them into nurseries etc.
Estimated figures show that grandparents give 1.7 billion hours of childcare every year, looking after more than 1.5 million grandchildren.

100,000 grandparents could be benefiting from this credit.

If this applies to you, will need to apply for a National Insurance Credit, also referred to as Specified Adult Childcare Credits.

How does it work?

The parent who receives child benefit for a child under the age of 12 automatically receives National Insurance (NI) credits towards their state pension. However when the parent goes back to work and pays NI through their wages, they no longer need the credit.

The parent signs a form and passes the NI credit to you, the grandparent  This means that the grandparent benefits from the NI credit and it goes towards your state pension instead.

This can add £230 a year to your pension, as long as you are under state pension age at the time of the child care.
This credit can also apply to uncles and aunties and other family members.
Click here for further information on the government website

For other financial advice please call 01752 837950 or email

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