Aunts and uncles who look after their nieces and nephews could qualify for National Insurance credits worth thousands of pounds in retirement through a government childcare scheme. The Specified Adult Childcare Credits scheme allows eligible relatives who provide childcare for children under 12 to build up qualifying years towards their State Pension.
How The £7,000 State Pension Boost Works
The scheme allows eligible family members to receive National Insurance credits for looking after a child while their parent is working. These credits can help relatives build the qualifying years needed for the full State Pension.
Under current rules, people generally need 35 qualifying years of National Insurance contributions to receive the full new State Pension, currently worth £241.30 a week.
This amount is due to rise to £250.70 a week from April 2027. Each additional qualifying year can increase annual retirement income by more than £350 under current rates.
Over a typical 20-year retirement, an additional qualifying year could therefore be worth more than £7,000.
Who Can Claim Specified Adult Childcare Credits?
The scheme is available to eligible family members who provide childcare for a child under the age of 12. This can include:
- Grandparents
- Aunts and uncles
- Other eligible family members
The credits are transferred from the child’s parent, who must have received Child Benefit for the relevant period and usually have a qualifying National Insurance record. The relative providing childcare must meet the scheme’s eligibility conditions.
The arrangement is particularly relevant to relatives who regularly help parents with childcare during school holidays or while they are working.
Claims Can Be Backdated To 2011
One of the main features of the scheme is that eligible relatives can apply retrospectively. Specified Adult Childcare Credits were introduced in 2011, meaning qualifying childcare periods dating back to that year can be considered.
Credits can be awarded for each week, or part of a week, during which the relative provided childcare. This could be particularly useful for people who helped care for children several years ago without knowing that the arrangement could count towards their State Pension.
How To Apply For The Credits
Eligible relatives can apply through the official government website using the CA9176 application form. The application requires information about the child, the parent receiving Child Benefit and the family member who provided childcare.
Applications are available here. Applicants should check that they meet the eligibility requirements before submitting their details.
Why Relatives Should Check Their National Insurance Record
Many family members provide childcare without realising that their contribution could have financial value later in life. Ross Taylor from EmpowerRD said that grandparents, aunts and uncles could be missing out on State Pension credits simply because they were unaware of the scheme.
He also noted that HMRC has made the application process straightforward. For relatives who have helped with childcare over the years, checking their National Insurance record and investigating previous qualifying periods could reveal an opportunity to increase their retirement income.
