New research reveals that grandparents across the UK could be in line for a significant financial boost of up to £19,151 after looking after their grandchildren, including during the recent October half-term break.
Financial Support for Grandparents
According to data from Age UK, almost half of all grandparents regularly take care of their grandchildren. While this creates precious bonding time, it can also strain their finances. Fortunately, several government schemes and payments are available to help grandparents over State Pension age with everyday living costs.
Specified Adult Childcare Credits offer a potential £6,600 boost. This scheme allows grandparents to receive National Insurance credits for looking after a grandchild under 12, which can increase their state pension. To qualify, the grandparent must be under state pension age during the care period, and the child's parents must be working. Applications can be backdated to 2011 and require forms to be completed by both the grandparent and the parent.
Key Payments and Eligibility
Child Benefit can provide up to £2,251.60 per year. This payment assists with the general costs of raising a child and is paid at two rates: £26.05 per week for the eldest or only child and £17.25 for each additional child.
The Household Support Fund can offer up to £300 in vouchers or free cash. This £742 million fund is distributed by local councils in England to residents on low incomes. Some councils provide extra support for those caring for children, particularly around school holiday periods.
The Holiday Activities and Food (HAF) programme provides free activities and meals to children from low-income families during school holidays. Support varies, as it is administered by local councils across England.
Correcting National Insurance Records
Furthermore, Home Responsibilities Protection (HRP) could be worth around £10,000 for some. HM Revenue and Customs (HMRC) identified over the summer that 119,000 people, mostly women, had incorrect gaps in their National Insurance records, leading to state pension underpayments. A total of £735 million has been repaid to those affected.
With multiple avenues for financial support available, grandparents are encouraged to check their eligibility for these payments, which can provide crucial help for families across the country.
