A record number of grandparents are tapping into a little-known Government scheme that could add thousands of pounds to their state pension — simply for helping out with the school run or looking after the grandchildren.
New figures reveal a surge in claims for Specified Adult Childcare (SAC) credits, a scheme that allows family members who care for children under 12 to receive National Insurance (NI) credits — and potentially boost their pension by up to £6,600.
Data obtained via a Freedom of Information request by wealth firm Quilter shows 42,964 people applied for the scheme between October 2023 and September 2024 — a 43 per cent rise on the previous year and more than double the number seen four years ago.
In total, over 131,000 applications have been made in the past five years, with 104,433 successfully approved. The scheme is aimed at grandparents, aunts, uncles, and even older siblings who look after young relatives while the parents are at work. By transferring unused NI credits from the child benefit recipient — usually a parent — to the family carer, these relatives can build up the years needed to qualify for the full state pension.
For each year of credits transferred, the individual could gain an extra £330 annually in pension income from 2025/26. That adds up to nearly £6,600 over a 20-year retirement — a lifeline for those not in formal work.
Jon Greer, head of retirement policy at Quilter, said: “Applications for specified adult childcare credits are surging as more families catch on to the fact that looking after grandchildren doesn’t just help with childcare but can also boost your retirement income.”
But experts warn many are still unaware the scheme exists — or that it can be backdated as far as 2011, potentially unlocking thousands of pounds in missed benefits. Mr Greer added: “Many eligible grandparents could be missing out on thousands of pounds simply because they don’t realise they qualify or how to apply.”
Who qualifies and how to claim
To be eligible, the applicant must be a close family member providing care for a child under 12. The child’s parent or guardian must receive child benefit and agree to transfer the credit. The applicant must also be below the state pension age, currently 66.
Only one credit per child benefit claim is available — so a grandparent caring for multiple children in the same household can still only receive one credit. Applications can be made via form CA9176 on the Government’s website, but you must wait until after 31 October following the end of the tax year being claimed for.
Why some miss out
Not all applications are accepted. Common reasons for rejection include already having a qualifying NI year through work, or being the child benefit claimant — in which case the credits are applied automatically. Mr Greer urged the Government to step up efforts to spread the word.
“We would welcome a renewed effort by the Government to raise awareness of these credits, particularly among lower-income families and communities where gaps in NI records are more common,” he said.
With pension shortfalls an increasing worry for millions, SAC credits may prove a lifeline — but only if families know they exist and how to claim.
