Grandparents receiving the state pension may be eligible for a £300 boost from HMRC through Specified Adult Childcare (SAC) credits. These credits are designed for those caring for children under 12 during term-time or school holidays, potentially increasing a person's pension by more than £6,000 over a typical 20-year retirement.
How SAC Credits Work
Each additional National Insurance credit currently contributes approximately £303 per year to the full new state pension from the Department for Work and Pensions (DWP). The scheme transfers National Insurance credits linked to child benefit away from the claimant to a relative who provides care for a child under 12, or under 17 if the child has a disability.
Eligible recipients receive a Class 3 National Insurance credit for every week or partial week spent caring for the child. However, only one credit can be transferred per child benefit claim, regardless of how many children are registered. For instance, if two grandparents care for their daughter's two children, only one credit is transferred, and the child benefit claimant decides who receives it.
Eligibility Criteria
The rule applies only to grandparents looking after children whose parents are employed. A backdated claim for Specified Adult Childcare can be made from as far back as April 6, 2011. You can apply if you are an eligible family member who provided care for a child under 12, and you were over 16 but under State Pension age when providing care.
You must be ordinarily resident in the UK (excluding the Channel Islands or Isle of Man). The child's parent or main carer must have claimed Child Benefit but does not need the credits themselves. They must also agree to your application by counter-signing the form, confirming that you provided care for their child during the stated period.
Eligible Family Members
You are considered an eligible family member if you are the mother or father who does not live with the child, or a grandparent, great-grandparent, or great-great-grandparent.
