State pension update as grandparents can claim £6,000 boost | Personal Finance | Finance
Almost 20,000 grandparents boosted their state pension last year simply by looking after their grandchildren, new figures suggest. But thousands more could be missing out on nearly £6,600 in extra retirement income. The boost comes from specified adult childcare credits, a type of national insurance credit designed to help carers qualify for the full state pension.
These credits can be claimed when a parent receiving child benefit is paying national insurance and another family member is providing childcare. To be eligible, the child must be under 12, and the carer can be a grandparent, aunt, uncle, or older sibling. Full-time care is not required – credits can be claimed for school drop-offs, school holidays, or other periods of childcare.
Claiming these credits can fill gaps in a national insurance record, helping people reach the 35 qualifying years needed for the full new state pension, which currently pays £230.25 per week.
Each year of credited childcare can increase the pension by £330, meaning a 20-year retirement could see a boost of nearly £6,600.
Since their introduction in 2011, just over 109,000 people have successfully claimed the credits, despite only 79% of applications being approved.
Last year, 19,621 people claimed the credits, while 5,220 applications were rejected, usually because the carer already had a qualifying year, received child benefit themselves, or submitted an incomplete application.
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Applicants can backdate claims to 2011 to maximise their state pension, and must wait until October 31 to apply for the current tax year to ensure the parent or main carer already has a qualifying year of national insurance.
Those wishing to apply will need the child’s details, records of the care provided, and contact information for the parent receiving child benefit.
Both the carer and the parent must sign a declaration, and the CA9176 form can be completed online and sent to HMRC by post. Applicants can then track the progress of their claim online.
This scheme offers a valuable opportunity for grandparents and other family carers to increase their retirement income while supporting younger generations.
