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Could your grandchildren help increase your pension?

Asking the grandparents to step in for childcare is, understandably, becoming increasingly popular. But, did you know that grandparents could actually benefit from it financially?

Grandparents or family members who care for a child or children whilst the parents work may be eligible to claim additional National Insurance (NI) credits towards their state pension. This is particularly valuable if they have gaps in their NI record, and it may help them qualify for a full state pension.

A family member could be:

  • Mother or father who does not live with the child
  • Grandparent, great-grandparent or great-great-grandparent
  • Brother or sister
  • Aunt or uncle
  • Civil partner

The additional NI credits are called Specified Adult Childcare Credits. Parents who receive Child Benefit for a child under 12 are also entitled to National Insurance credits if they do not work. But if they do work, they have no need of the credits and they can be passed to a grandparent or family member who helps to look after the child.

The grandparent or family member will receive a Class 3 NI credit for each week or part week that they cared for the child. These credits were introduced in April 2011 and you would need to make an application to receive the credits. Even better, if you didn’t know about this until now, the credits can be backdated. Each year of credit is worth 1/35 of the value of the state pension. This equates to approximately £250 per year, so it is worth looking into!

If you wish to find out more and check your eligibility, please follow the link here. And of course we’re always here to answer any questions you might have.