MARTIN Lewis’ MoneySavingExpert (MSE) has revealed how grandparents can get thousands of pounds in free cash.
MSE explained how people can get help through specified adult childcare credits.
PAMartin Lewis’ MSE has revealed how grandparents can apply for a “little-known” credit[/caption]
Writing on X, formerly known as Twitter, it said: “If one of your family members looks after your children while you work, they can apply for a little-known credit that may be worth £1,000s.”
It’s essentially compensation for grandparents below state pension age looking after their grandchildren if their parents are at work – and they’re worth £300 a year.
The credits count as a National Insurance contribution (NICs) credit for those who otherwise don’t work.
This is important as you need at least 10 years’ worth of NI payments or credits to qualify for the state pension and at least 35 years’ worth to get the full amount.
Grandparents and any family member can apply for these credits for their state pension entitlement for the previous tax year.
Those who have been providing childcare in earlier years can backdate their claim to 2011, when the scheme started.
One MSE reader wrote to the website about finding out they could qualify after watching an episode of the Martin Lewis Money Show.
They said: “I was nearly two years short on National Insurance contributions and told I’d need to pay over £1,000 to make it up.
“After watching your programme after Specified Adult Childcare Credit, I filled in the form as I look after my grandchildren two days a week.
“I received confirmation this week that the years are now full and I don’t need to pay anything to get my full state pension next June.”
Applications can be backdated to 2011, even if some of it was virtual care during the pandemic.
Who is eligible for the credits?
For someone to be eligible for the “Specified Adult Childcare Credits”, the carer (or grandparent) must be under the state pension age, which is currently 66.
Martin added: “You can’t get it if you’re already at state pension age, but if you’re at state pension age and you don’t get the full pension and you did child care before you hit state pension age then you can backdate it.
“So, if grandparents are looking after the kids they may be able to boost their pension.”
The child being cared for must also be under 12, or 17 if they have disabilities.
The carer must live in England, Scotland, Wales or Northern Ireland.
However, you won’t be eligible if you live on the Channel Islands or the Isle of Man.
Crucially, you’re only eligible if the child’s parent is entitled to child benefit and has a qualifying year for national insurance without needing the parent’s class 3 national insurance credits, which they receive automatically from child benefit.
You can check your national insurance record on the gov.uk website to see if you have gaps in your contributions.
How to check what benefits you could be entitled to
The quickest way to see what benefits you may be able to claim is to use one of the three benefit calculators recommended by Gov.uk.
Each one is free to use. They are:
Turn2us
Policy in Practice
entitledto
Before using the tools, make sure you have key financial information to hand, such as bank and savings statements, and information on pensions and existing benefits.
If you live with a partner or family, get their basic financial information together too as this could affect your claim.
For each of these, you’ll be asked information about your circumstances, such as your current employment and income.
You’ll also need to give information about yourself, including your age and who you live with.
You can then use the contact information on Gov.uk to get the ball rolling and apply for what you’re owed.
Of course, the tools only provide an indicator of what benefits you can claim – and usually don’t include means tested benefits, so you may be entitled to even more.
What do I get?
How much you’ll get in credits depends on how long you’ve been looking after your grandchildren.
Each yearly credit is worth 1/35 of the value of the state pension, which is currently around £300 a year.
That means if you’ve been looking after your grandkids since 2011, you would expect to receive the full £3,300 towards your state pension.
To figure out how much you should get, just multiply the number of years you’ve been caring for your grandchild by £300.
How do I claim the credits?
It’s not so easy to get these credits as claiming them involves parents signing over their child benefit national insurance credit to someone else.
Only one grandparent or family member can receive the credit as well and the credit isn’t per child but per child benefit claimant.
As an example, if two grandparents care for their daughter and her child, there is only one credit available and the daughter has to decide which grandparent should have it.
But if the grandparents care for their daughter’s child and their son’s as well, there are likely to be two child benefit recipients.
You can apply for the credits using this form on the government’s website.
Once you’ve filled in your details, the child’s parent (or main carer) must also agree to your application by countersigning the form.
If you need any help, you can call the national insurance helpline on 0300 200 3500.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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