People who look after their grandchildren could be eligible for an additional £300 a year.
Grandparents could get an extra £300 a year for caring for their grandchildren (Image: Getty)
Pensioners who look after their grandchildren could be eligible for an additional £300 from the Government. Elderly people who care for children under 12 can increase their State Pension payments through a National Insurance benefit.
Over an average 20-year retirement, these top-ups from HM Revenue and Customs (HMRC) could amount to more than £6,000.
As reported by the Daily Record, a single extra National Insurance credit currently adds approximately £303 per year to the full New State Pension.
The State Pension boost, known as Specified Adult Childcare, works by transferring the National Insurance credit associated with Child Benefit from the recipient of the benefit to a family member caring for a related child under 12, or 17 if they have a disability.
A Class 3 National Insurance credit is given for each week or part week you cared for the child. However, only one credit is available per Child Benefit claim, regardless of the number of children included in the claim.
The cash is known as Specified Adult Childcare (Image: Getty)
For example, if two grandparents cared for their daughter’s two children, only one credit is available for transfer and the recipient of the Child Benefit must decide who receives the credit.
However, if the grandparents also have a son and care for both their daughter’s and son’s children, there are likely two Child Benefit recipients and thus, two credits available for transfer. If no one has claimed Child Benefit for the child, there is no attached National Insurance credit to transfer and credits cannot be granted.
While it might seem complicated, the boost is only available for those looking after children whose parents are working. This means they don’t need the National Insurance credits from claiming Child Benefit for their own State Pension.
It’s also worth noting that retrospective claims for Specified Adult Childcare can be made dating back to 6 April 2011.
Claiming for care during the pandemic
According to guidance on GOV.UK, your usual caring arrangements may have been disrupted by COVID-19 since March 2020.
This suggests that if you provided care, even remotely via phone, text message or video call during the pandemic and subsequent lockdowns, you might be able to fill any gaps in your National Insurance record by claiming Specified Adult Childcare.
This applies to the tax years 2019 to 2020 and 2020 to 2021.
The full New State Pension is currently valued at £221.20 per week, equivalent to £11,502 annually. However, to receive this maximum amount you require approximately 35 years’ worth of National Insurance contributions.
You need a minimum of 10 years to receive any payment at all. Some people may have been “contracted out” and will require more than 35 years – find out more here.
Who is eligible to apply for Specified Adult Childcare credits?
You can apply provided:
- You qualify as a family member who cared for a child under 12
- You were over 16 and below State Pension age when you cared for the child
- You are ordinarily resident in the UK, excluding the Channel Islands or the Isle of Man
- The child’s parent (or primary carer) has claimed Child Benefit but does not need the credits themselves
The child’s parent (or primary carer) agrees to your application by counter-signing the form to confirm that you:
- Cared for their child during the stated period
- Can have the credits for the stated period
Who is deemed an eligible family member?
You are considered an eligible family member if you are:
- The non-residential mother or father
- A grandparent, great-grandparent or great-great-grandparent
- A brother or sister – this includes half-brothers or half-sisters, step-brothers or step-sisters, adopted brothers or sisters, aunts or uncles
Moreover, you are also regarded as an eligible family member if you are either:
- The current or former spouse, partner or civil partner of anyone mentioned above
- The child of the current or former spouse, partner or civil partner of anyone mentioned above
Who should refrain from applying?
You should avoid applying for credits during the same period if:
- You already have a qualifying year of National Insurance – usually because you’re employed or receive other National Insurance credits
- You’re receiving Child Benefit for any child and already get credits automatically
If you’re the spouse or partner living with the Child Benefit recipient and want to transfer the credits to yourself, you need to complete form CF411A – more details can be found here.
