State pension credits for grandparents

Under rules introduced in April 2011, when a grandparent (or other family member) is looking after a grandchild aged under 12 while the parent is working, the grandparent may be entitled to a National Insurance Credit to help them build up their own state pension. This is called the Specified Adult Childcare Credit.

This support is available because non-working parents in receipt of child benefit qualify for a National Insurance Credit – but if they are working (and earning above the Lower Earnings Limit, which is £116 per week for the 2018/19 tax year) they don’t need the Credit and will be building up state pension anyway.

Many grandparents did not get the opportunity to build up a full state pension, particularly if they took time out to care for a family.

The working parent in receipt of child benefit simply signs over their National Insurance Credit to the grandparent (or other family member) who is looking after the child. (This only applies if the grandparent or other family member has not reached state pension age as yet).

An estimated 90% of those eligible to claim have not yet registered, but claiming for a single year could add an additional £230 per year of state pension.

To make a claim, you need to fill in the HMRC form CA9176 – https://www.gov.uk/government/publications/national-insurance-application-for-specified-adult-childcare-credits-ca9176. You can also claim for previous years.

If you need more details, please contact us or have a look at Martin Lewis’s website, which as always has a very clear explanation – https://www.moneysavingexpert.com/

Please pass on this information to friends, colleagues and family who may be eligible.

The area of taxation is not regulated by the Financial Conduct Authority (FCA).

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