Grandparents can boost State Pension with childcare credits

Grandparents could be missing out on crucial National Insurance credits boost their state pension, while caring for their grandchildren <i>(Image: Getty Images)</i>
Grandparents could be missing out on crucial National Insurance credits boost their state pension, while caring for their grandchildren (Image: Getty Images)
This article is brought to you by our exclusive subscriber partnership with our sister title USA Today, and has been written by our American colleagues. It does not necessarily reflect the view of The Herald.

Grandparents who care for their grandchildren could be eligible for Class 3 National Insurance (NI) credits, which count towards their state pension. Introduced on 6 April 2011, these credits can fill gaps in your NI record and boost your future pension.

Martin Lewis has previously explained how it works: “You can get NI credits for childcare if you’re on certain benefits, or if you’re a carer.

"People often miss years if they took time off work, had low income, lived abroad, or didn’t claim the right childcare credit.”

According to HMRC, you may qualify if:

  • You are an eligible family member caring for a child under 12.
  • The child’s parent or main carer does not need the credits themselves.

“These credits work by transferring the weekly NI credit a parent or carer gets, as the Child Benefit recipient, to an eligible family member,” HMRC explains.

“You will get a Class 3 NI credit for each week or part week you provided care for the child.”

Only one credit is available per Child Benefit claim, even if there are multiple children.

The Child Benefit recipient decides who receives the credit, and if no one has claimed Child Benefit, no credit can be transferred.

If you provided care during COVID-19, including remotely via video or phone, you can still apply for credits for the 2019–2020 and 2020–2021 tax years.

You can apply if you:

  • Were aged 16 or over but under State Pension age when you cared for the child.
  • Are ordinarily resident in the UK (not the Channel Islands or Isle of Man).
  • Have the child’s parent or main carer’s agreement to your application.

To apply, complete form CA9176, print it, and post it to HMRC. If you need an accessible format, email different.format@hmrc.gov.uk


Read more:


Who is eligible for the NI credits?

Eligible family members include grandparents, great-grandparents, aunts, uncles, siblings (including half-, step- or adopted), and spouses or civil partners of anyone in the list.

Do not apply if you already have a qualifying NI year, receive Child Benefit for any child and automatically get credits, or are a partner living with the Child Benefit recipient (special form CF411A applies).

You’ll need your details, the child’s details, the care periods, and the Child Benefit recipient’s information. Both must sign a declaration.

Get involved
with the news

Send your news & photos