State Pension boost of £300 each year for Brits looking after their grandchildren

Older individuals who provided childcare during the summer school holidays for children under 12 may be able to increase their State Pension payments by over £6,000 during a typical 20-year retirement period by claiming a National Insurance perk from HM Revenue and Customs (HMRC).

A single additional National Insurance credit can add approximately £303-a-year to the full, New State Pension, which is worth £11,973 over the current financial year.

This State Pension boost is known as Specified Adult Childcare and operates by transferring the National Insurance credit linked to Child Benefit from the Child Benefit recipient to a family member who is caring for a related child under 12, or 17 if they have a disability.

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You will receive a Class 3 National Insurance credit for each week or part week you cared for the child, but there is only one credit available for each Child Benefit claim - regardless of how many children are on the claim itself.

For instance, if two grandparents cared for their daughter's two children, there is only one credit available for transfer and the Child Benefit recipient must decide who should receive the credit, reports the Daily Record.

However, if the grandparents also have a son and provide care for both their daughter's child and their son's child, there could be two Child Benefit recipients and therefore, two credits available for transfer. If no one has claimed Child Benefit for the child, there is no attached National Insurance credit to transfer and credits cannot be awarded.

It might sound a bit complex, but essentially the boost is only available for looking after children whose parents are working, so they don't need the National Insurance credits from claiming Child Benefit to go towards their own State Pension. It's also worth noting that you can put in a retrospective claim for Specified Adult Childcare going back to April 6, 2011.

Claim for providing remote care during the Covid-19 pandemic

Guidance on GOV.UK states that from March 2020, your normal caring arrangements may have been affected by Covid-19.

This means that if you provided care, even if it was remotely over the phone, by text message or video call during the pandemic and subsequent lockdowns, you may also be able to plug any gaps in your National Insurance record by claiming Specified Adult Childcare. This applies to the tax years 2019 to 2020 and 2020 to 2021.

The full, New State Pension is worth £230.25 per week, equivalent to £11,973 each year, but to receive that maximum amount you need around 35 years' worth of National Insurance contributions. You need at least 10 years to receive any payment at all.

Some folks may have been 'contracted out' and will require more than 35 years - find out more here.

Who's eligible to apply for Specified Adult Childcare credits?

You can apply provided that:

• you are an eligible family member who provided care for a child under 12
• you were over 16 and under State Pension age when you provided care for the child
• you are a 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 primary carer) consents to your application by co-signing the form to confirm that you:

• provided care for their child for the period stated
• can have the credits for the period stated

Who qualifies as an eligible family member

You're considered 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're also deemed 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

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Who shouldn't apply

You shouldn't apply for credits if during the same period you:

• have a qualifying year of National Insurance, usually because you work or receive other National Insurance credits
• are receiving Child Benefit for any child and already get credits automatically

If you're the spouse or partner living with the Child Benefit recipient and wish to transfer the credits to yourself, you need to fill in form CF411A - more details here.

When to apply

You must wait until October 31 after the end of the tax year you want to apply for. This means you can now claim for the financial years 2011/12 - 2023/24. This is because HMRC needs to verify that the parent or main carer already has a qualifying year for National Insurance purposes.

What you need to apply

To fill in an application form, you will need:

• your personal details (as the eligible family member that provided care for the child)
• the child’s details and the periods you provided care for them
• the personal details of the child’s parent or main carer - the Child Benefit recipient

The HMRC guidance clarifies that both you and the Child Benefit recipient must sign a declaration on the application form.

It also states that the child's parent or main carer should check their National Insurance record online before you apply, to ensure that they have credits to transfer.