Little known pension credit boost available for childcare could help grandparents
Grandparents who help out with childcare over the summer holidays could increase their state pension by claiming a benefit that is not widely known about
Grandparents who assist with childcare over the summer holidays could see a significant increase in their pension credit. Introduced in 2011, Specified Adult Childcare Credits (SACCs) were designed to bolster the future state pensions of those caring for a family member's children.
The National Insurance credit received by a parent or carer claiming Child Benefit can be transferred weekly as Class 3 National Insurance credit for each week or part-week that care is provided for the child.
Department for Work and Pensions (DWP) figures reveal that over 12 million people in the UK claim state pension. However, only around 150,000 applications for SACCs have been made in the past eight years, according to HM Revenue and Customs (HMRC) data.
Who qualifies for these credits?
Official government guidance states that you may be entitled if you are an eligible family member who cared for a child under 12, and their parent or primary carer does not require the credits themselves. A comprehensive list of qualifying family members can be found on GOV.UK.
Applications for the credits can be submitted if you meet one of the following criteria:
- you are an eligible family member, who provided care for a child
aged under 12 - you were aged 16 years and over, but under State Pension age, when you provided care for the child
- you are ordinarily resident in the UK, but not the Channel Islands or the
Isle of Man - the child’s parent or main carer has claimed Child Benefit, but does not need the credits themselves
- the child’s parent or main carer agrees to your application
However, it's crucial to remember that applications for SACC can only be submitted after October 31 of the tax year you wish to claim for, as checks will need to be conducted if the parent or main carer of the child has a qualifying year for National Insurance reasons.
To apply for these credits, simply fill out this online form, print it, and post it to HMRC. The necessary address is conveniently included on the form itself, according to government guidelines.
