Specified Adult Childcare Credits: grandparents & carers missing out on £330 a year

Relatives looking after a child while a parent works could be entitled to a State Pension top-up worth £6,600 over a 20-year retirement, but the vast majority of eligible claimants are missing out.

Many thousands of carers are still missing out on a pension boost that could be worth thousands in retirement.

Currently, any relative looking after a child in order to allow a parent to return to work may be entitled to a National Insurance Credit (NIC) that tops up their State Pension.  

Known as the Specified Adult Childcare Credits, they're worth £330 a year.

However, many eligible families are likely missing out due to a lack of awareness.

Research from pension firm Royal London back in 2023 found that just 10% of over 50s have tried to claim these valuable NI credits. 

This means many are missing out on a significant sum, with just one year adding £6,600 over the course of a 20-year retirement.

How it works

If a mother goes back to work after the birth of a child, she can sign a form that allows a grandparent or other family member to receive National Insurance Credits for looking after the child.

According to Royal London, a grandparent who gives up work to look after the grandchild would otherwise be losing out on valuable State Pension rights.

Any relative can claim once mum has gone back to work, as long as they’re of working age and the children that they look after are under 12.

You can even make backdated claims on the credits as far back as 2011. You can fill in the form here.

To make sure your retirement planning remains on course, make sure you avoid these five costly pension mistakes that will slash your income.