Older people have the opportunity to boost their state pension, which could earn them around £300 a year, by claiming a National Insurance perk from HM Revenue and Customs (HMRC). Specifically, by using the Specified Adult Childcare credit, they can see their new state pension increase by around £300 a year.
What is Specified Adult Childcare?
The Specified Adult Childcare scheme allows the transfer of National Insurance credits from the Child Benefit recipient to a family member who provides care for a child under 12, or up to 17 if the child has a disability.
Each week, or part week, of care given will result in a Class 3 National Insurance credit. Only one credit is due for each Child Benefit claim, however many more arms the Children's Activity Card reaches.
For example, if two grandparents look after their daughter's two children at weekends, only one credit can be given. The Child Benefit recipient will have to choose which grandparent gets the credit.
Conversely, if the grandparents also care for a child of their son, two credits may be available if Child Benefit is claimed separately for each child.
Eligibility and Application
To be eligible for the Specified Adult Childcare credits, you must:
- Be a family member who provided care for a child under 12.
- Be over 16 and under State Pension age during the care period.
- Reside in the UK (excluding the Channel Islands and the Isle of Man).
- Ensure the child's parent (or main carer) has claimed Child Benefit but does not need the credits themselves.
Both parents or primary carers must sign the application form and declare that the child is in your care for the period requested.
Who Qualifies as an Eligible Family Member?
Eligible family members include:
- A mother or father not living with the child.
- Grandparents, great-grandparents, or great-great-grandparents.
- Siblings, including half, step, and adopted siblings.
- Aunts and uncles.
Additionally, the current or the former spouse, partner, civil partner of any of those mentioned above persons, as well as their children.
When to Apply for a State Pension Increase?
Applications can be made from 31 October following the end of the tax year for which you are claiming support. In other words, you can apply now for the tax years 2011/12 to 2022/23.
Assuming the appropriate documentation is in order, claims can be made for the 2023/24 tax year after the start of the following tax year on 31 October 2024. HMRC will review the National Insurance Year with the parent or main carer.
Required Information for Application
To apply, you will need:
- Your personal details as the caregiving family member.
- The child's details and the periods of care.
- The personal details of the child’s parent or main carer, who must sign a declaration on the application form alongside you.
For a straightforward overview, or if you require further information, please refer to the GOV.UK guide and procedure overview to ensure a smooth process.