If you are an older person looking after children under 12 during school term or holidays, you could increase your State Pension by more than £6,000 over 20 years. This is possible through a special National Insurance credit called Specified Adult Childcare.
What Is the Specified Adult Childcare Credit?
This credit allows a National Insurance boost to be transferred from the person receiving Child Benefit to a family member who cares for a related child under 12 (or under 17 if the child has a disability). One credit adds about £303 a year to the full, New State Pension.
You get a Class 3 National Insurance credit for each week you care for the child. However, only one credit can be transferred per Child Benefit claim, no matter how many children are listed on it.
For example, if grandparents care for two children but there is only one Child Benefit claim, only one credit can be transferred. If the grandparents care for children from two different Child Benefit claims, two credits could be transferred.
Who Can Claim These Credits?
To apply, you must:
- Be a family member who cared for a child under 12 (or 17 with a disability)
- Be over 16 and under State Pension age when caring
- Live in the UK (not the Channel Islands or Isle of Man)
- Care for a child whose parent receives Child Benefit but does not need the National Insurance credits for their own pension
Eligible family members include parents not living with the child, grandparents, great-grandparents, siblings, aunts, uncles, and some former spouses or partners related to the child.
Who Should Not Apply?
You should not apply if you:
- Already have a qualifying year of National Insurance for the same time (through work or other credits)
- Receive Child Benefit yourself and already get credits automatically
- Are the spouse or partner living with the Child Benefit recipient (there’s a separate form for this situation)
Can You Claim for Care Given During the Covid-19 Pandemic?
Yes. If you cared for a child remotely during lockdowns—by phone, video call, or text—you may claim credits for the tax years 2019-2020 and 2020-2021 to fill gaps in your National Insurance record.
How to Apply and What You Need
You must apply after October 31 following the end of the tax year you want to claim for. This means you can claim credits for care given from the 2011/12 tax year up to 2023/24.
To apply, you will need:
- Your personal details
- Details of the child and the care periods
- Details of the child’s parent or main carer who receives Child Benefit
Both you and the Child Benefit recipient must sign the application form to confirm the care arrangement and transfer of credits.
It is important that the Child Benefit recipient checks their National Insurance record online before applying to ensure they have credits available for transfer.
Why Is This Important?
The full New State Pension pays about £230 per week, or nearly £12,000 a year. To get the full amount, you need about 35 years of National Insurance contributions or credits. If you don’t have enough years, your pension could be much lower.
This credit helps carers who might not have paid enough National Insurance through work, especially those who spend time caring for grandchildren or other children. Claiming these credits can make a big difference in the amount of State Pension you receive in retirement.
FAQs
What is the Specified Adult Childcare National Insurance credit?
It is a National Insurance credit transferred from the Child Benefit recipient to a family member caring for a related child under 12 (or 17 if disabled) to boost their State Pension.
Who can claim the childcare National Insurance credit?
Eligible family members aged 16 to State Pension age who care for a child under 12 (or 17 with a disability), living in the UK, whose parent receives Child Benefit but does not need the credit for their own pension.
How much can this credit increase my State Pension?
Each credit adds around £303 per year to your State Pension, potentially boosting your pension by over £6,000 across 20 years of retirement.
Can I claim credits for childcare provided remotely during the Covid-19 pandemic?
Yes, if you provided care by phone, video, or text during the 2019-2020 and 2020-2021 tax years, you may claim these credits.
How do I apply for the Specified Adult Childcare credits?
You apply after October 31 following the tax year you want to claim for, by submitting a form with details of the child, care periods, and signatures from both you and the Child Benefit recipient.
