How grandparents could boost their state pension by thousands of pounds

Grandparents, aunts, uncles and even brothers and sisters could be missing out on free credits that boost state pension income by potentially thousands of pounds.

If you’ve helped out a relative by providing childcare, you may qualify for Specified Adult Childcare credits.

Figures from wealth management firm Quilter estimate a claim could boost someone’s state pension by £7,000 over their retirement.

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Helen Morrissey, head of retirement analysis at wealth manager Hargreaves Lansdown, said: “Specified Adult Childcare credits can be a great way of boosting gaps in state pension entitlement without having to pay for voluntary National insurance credits.”

What are Specified Adult Childcare credits and who is eligible for them?

If you care for a child under the age of 12 and claim Child Benefit you are also entitled to National Insurance credits.

However, where a parent or carer is receiving National Insurance (NI) credits through employment or self-employment and therefore doesn’t need the NI credits gained from claiming Child Benefit, they can transfer them to an eligible relative providing childcare.

These are known as Specified Adult Childcare credits and were introduced in April 2011. You can backdate a claim for these credits from this date.

There are criteria you must meet to qualify for Specified Adult Childcare credits. You can apply as long as:

• 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

The child’s parent or main carer must countersign the application form to confirm they agree that, for the period stated, you:

• provided care for their child
• can have the credits

Who counts as an eligible family member?

You are classed as an eligible family member if you are the:

• mother or father who does not live with the child
• grandparent, great-grandparent or great-great-grandparent
• aunt or uncle
• brother or sister

A brother or sister can include:

• a half-brother or half-sister
• a step-brother or step-sister
• an adopted brother or an adopted sister

You are also classed as an eligible family member if you are either the:

• current or previous spouse, partner or civil partner of anyone in the list
• son or daughter of the current or previous spouse, partner or civil partner of anyone in the list

There is no minimum requirement for the number of hours of childcare provided. Even if you’re providing care one day a week, you could be eligible.

However, there is just one credit available per Child Benefit claim, no matter how many children are on the claim.

For example, if two grandparents provided care for their daughter’s two children, there is only one credit available for transfer.

But, if they provided care for both their daughter’s child and their son’s child, there will be two Child Benefit claims, and therefore two credits that can be transferred.

How Specified Adult Childcare credits can boost your state pension

You need 35 years of NI contributions to receive a full new state pension, and at least 10 years to qualify for any new state pension.

If you’ve checked your NI record and you’re not in line for the amount you want, Specified Adult Childcare credits can give you a boost.

A claim could increase someone’s state pension income by more than £7,000 over the course of a typical retirement, analysis by Quilter suggests.

More than 200,000 applications for the credits have been made since 2016, with 79% (159,116) approved, according to HMRC figures, obtained in a Freedom of Information (FOI) request by the wealth manager.

Jon Greer, head of retirement policy at Quilter, said: “For many people, securing the full state pension is a key foundation of later life income, and these credits can offer grandparents a relatively simple way to strengthen their entitlement while helping family with childcare.”

How to apply for Specified Adult Childcare Credits

To transfer the NI credit, Child Benefit must have been claimed. Otherwise, credits can’t be awarded.

You can claim credits for the previous tax year after 31 October. For example, if you wanted to claim for the 2026/27 tax year, you would have to wait until 31 October 2027.

To apply, complete the form CA9176 on gov.uk, then print and post it to HMRC. The government recommends you “get all of your information together before you start” as the form is completed online and you can’t press save.