State pensioner could earn £303 a year (Image: Getty)
State pensioner grandparents who look after their grandchildren could be in line to receive extra funds to supplement their pension. Specified Adult Childcare (SAC) credits mean that those caring for children under 12 during term-time or school holidays could qualify for the increase.
SAC could boost a person’s pension by more than £6,000 throughout a typical 20-year retirement if they are eligible to secure a National Insurance benefit from HMRC.
As reported by Cambridgeshire Live, each additional National Insurance credit currently contributes about £303 annually to the full new state pension.
The way the rule works is by transferring National Insurance credit linked to child benefit away from the child benefit claimant towards a relative who provides care for a child under 12, or under 17 if the child has a disability.
Those who are eligible to receive the benefit will be awarded a class 3 National Insurance credit for every week or partial week spent caring for the child. Irrespective of of how many children are registered on the claim, only one credit can be transferred per child benefit claim.
For example, if two grandparents looked after their daughter’s two children, only one credit would be transferred, and the child benefit claimant is in charge of deciding who receives it.
The rule is only accessible to grandparents looking after children whose parents are employed.
Cambridgeshire Live reports that a backdated claim for Specified Adult Childcare can be made from as far back as April 6, 2011.
Who is eligible for Specified Adult Childcare credits?
If you meet these criteria you can apply:
- 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 ordinarily 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 main carer) agrees to your application by counter-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 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
Who should not apply
You should not apply for credits if for the same period you:
- already 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 are the spouse or partner living with the Child Benefit recipient and want to transfer the credits to yourself, you need to complete 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 currently claim for the financial years 2011/12 – 2024/25.
This is because HMRC needs to check that the parent or main carer already has a qualifying year for National Insurance purposes.
What you need to apply
To complete 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
Full details on how to apply can be found on the GOV.UK website.
