Key facts
- Grandparents providing childcare for children under 12 may be eligible for National Insurance credits.
- These credits, called Specified Adult Childcare Credits (SACCs), can increase state pension payments.
- Parents can transfer their Child Benefit credits to eligible family members, such as grandparents.
- The benefit is available for children up to age 12.
- Applications require signatures from both the carer and the Child Benefit recipient.
- Credits protect entitlement to the basic State Pension and bereavement benefits.
Thousands of grandparents who provide childcare for their grandchildren could be missing out on significant boosts to their state pensions. The Specified Adult Childcare Credits (SACCs) system allows parents to transfer National Insurance credits, typically received through Child Benefit, to eligible family members who are caring for children under the age of 12. This initiative aims to ensure that those providing essential childcare, often saving families substantial nursery fees, are recognized and can build up their own National Insurance record.
According to data, a substantial percentage of young children receive care from their grandparents. However, many of these caregivers may not be aware of or have claimed SACCs. While nearly 160,000 successful claims have been made since 2015, it is estimated that thousands more are eligible. To qualify, the child must be under 12, and the applicant must be an eligible family member, which includes grandparents, aunts, uncles, or siblings, or a current or former spouse/partner of these individuals. The credits can be transferred for a full tax year and protect entitlement to the basic State Pension and bereavement benefits.
Pensions Minister Steve Webb has urged grandparents to claim these credits, emphasizing that their contributions to childcare are as valuable as paid employment and should be protected for their state pension rights. Grandparents Plus and Age UK estimate the value of childcare provided by grandparents to be £7.3 billion annually, highlighting the critical role they play in enabling parents to work. Applications must be submitted to HM Revenue & Customs (HMRC) and require signatures from both the carer and the Child Benefit recipient, with deadlines typically in the October following the end of the relevant tax year.