Thousands of grandparents get state pension boost for helping with childcare
The credits are designed to help people below state pension age build up their state pension rights
By Vicky Shaw
Grandparents who help out with childcare could be eligible for valuable credits that significantly boost their state pension, a benefit particularly relevant as many prepare to support families over the summer holidays.
Wealth manager and financial adviser Quilter revealed that 202,037 applications for specified adult childcare credits (SACCs) were made between 2016-17 and 2024-25.
The figures, obtained via a Freedom of Information request to HM Revenue and Customs (HMRC), show that around four-fifths (79 per cent), or 159,116, of these applications were approved.
Applications saw a notable increase, jumping from 29,967 in 2022-23 to 42,964 in 2023-24.
The HMRC response said that the notable increase in applications that year followed media coverage which raised awareness of the scheme.
The credits are designed to help people below state pension age to build up their state pension rights and can plug gaps in national insurance (NI) records.
The credits work by transferring the weekly NI credit that a parent or carer receives as a child benefit recipient to an eligible family member.
People may be entitled to the credits if they provided care for a child aged under 12 and the parent or main carer does not need the NI credits themselves.
Quilter said the figures also highlight why it could be useful to maintain a child benefit claim, as opting out entirely can mean there are no NI credits available to transfer.
It added that the credits can be particularly valuable in addressing gaps in NI records that often arise from time spent out of the workforce, which can disproportionately affect women.
Jon Greer, head of retirement policy at Quilter, said: “For many people, securing the full state pension is a key foundation of later life income, and these credits can offer grandparents a relatively simple way to strengthen their entitlement while helping family with childcare.
“However, the data also highlights that a significant number of applications remain unsuccessful, which points to a need for clearer guidance around eligibility and how the system works in practice.
“With childcare costs continuing to rise, grandparents are playing an increasingly important role in supporting working families.
“Ensuring they are able to access the pension benefits linked to that support remains an important part of the wider retirement system.
“As childcare costs continue to rise and families rely more on informal support, ensuring these credits are properly understood and used will only become more important.”
Quilter said reasons for rejection may include applicants already having a qualifying year of NI, often because they are still working or receiving other credits.