If you, or your partner, have been providing childcare during term-time or school holidays, you may be able to qualify for a State Pension top up that will typically boost payments by more than £6,000 over a 20-year retirement period.
The top up (known as the Specified Adult Childcare credit) can plug gaps in your National Insurance record: you will receive a Class 3 National Insurance credit for each week or part week you provided care for the child. A single extra National Insurance credit currently adds a very handy £303-a-year on to the full, New State Pension – which you will then go on receiving throughout your retirement years.
It works by transferring the weekly National Insurance credit a parent or carer normally gets as the Child Benefit recipient to an eligible family member who is providing care for a related child under 12 (or 17 if they have a disability). You will receive a Class 3 National Insurance credit for each week or part week you provided care for the child.
One slight complication to bear in mind is that there is only one credit available for each Child Benefit claim. For example, if two grandparents provide care for their daughter’s two children, there is only one credit available for transfer. However, if the grandparents also have a son and provide care for his children as well, there will be two credits available for transfer.
It’s also worth noting that you can put in a retrospective claim for Specified Adult Childcare going back to April 6, 2011, including the (often!) disrupted period during Covid lockdown. If you provided care then, even remotely over the phone or via video, you may still be able to claim.
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
- brother or sister – including a half-brother or half-sister, step-brother or step-sister, an adopted brother or an adopted sister, aunt or uncle
You are also classed as an eligible family member if you are either the:
- current or previous husband, wife, partner or civil partner of anyone in the list above
- son or daughter of the current or previous husband, wife, partner or civil partner of anyone in the list above.
You can find out more on the Government website: https://www.gov.uk/guidance/apply-for-specified-adult-childcare-credits
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