Elderly individuals who are providing care for children under the age of 12 during the school holidays this summer may be able to enhance their State Pension payments by over £6,000 across a typical 20-year retirement period. This can be achieved by claiming a National Insurance benefit from HM Revenue and Customs (HMRC).
A single additional National Insurance credit can increase the full, New State Pension by approximately £303 per annum. As reported by the Daily Record, for each week or part week that you provide care for a child, you will receive a Class 3 National Insurance credit. However, only one credit is available per Child Benefit claim, regardless of the number of children included in the claim.
For instance, if two grandparents cared for their daughter’s two children, only one credit would be available for transfer. The recipient of the Child Benefit must decide who should receive the credit.
However, if the grandparents also have a son and provide care for both their daughter’s child and their son’s child, it’s likely that there will be two Child Benefit recipients and thus, two credits available for transfer. If no one has claimed Child Benefit for the child, there is no attached National Insurance credit to transfer and credits cannot be awarded.
It may seem a tad complex, but essentially, the boost is only available for caring for children whose parents are employed, hence they don’t require the National Insurance credits from claiming Child Benefit towards their own State Pension.
It’s also worth mentioning that retrospective claims for Specified Adult Childcare can be made dating back to 6 April 2011.
Claims for providing remote care during the Covid-19 pandemic
According to guidance on GOV.UK, your usual caring arrangements may have been disrupted by Covid-19 from March 2020 onwards. This implies that if you provided care, even remotely via phone, text message or video call during the pandemic and subsequent lockdowns, you might be able to fill any gaps in your National Insurance record by claiming Specified Adult Childcare.
This is applicable for the tax years 2019 to 2020 and 2020 to 2021. The full, New State Pension amounts to £230.25 per week, equivalent to £11,973 annually, but to receive this maximum amount, approximately 35 years’ worth of National Insurance contributions are required.
A minimum of 10 years is needed to receive any payment at all. Certain people may have been “contracted out” and will require more than 35 years – further information can be found here.
Who is eligible to apply?
You are eligible to apply if:
- You are a qualifying family member who has provided care for a child under 12
- You were aged between 16 and the State Pension age when you cared for the child
- You are ordinarily resident in the UK, excluding the Channel Islands or the Isle of Man
- The parent (or primary carer) of the child has claimed Child Benefit but does not require the credits themselves
The parent (or primary carer) of the child must agree to your application by counter-signing the form to confirm that you:.
- Provided care for their child during the specified period
- Are entitled to the credits for the stated period
Who qualifies as an eligible family member?
You are considered an eligible family member if you are the:
- Mother or father who does not reside with the child.
- Grandparent, great-grandparent or great-great-grandparent.
- Brother or sister – this includes half-brothers or half-sisters, step-brothers or step-sisters, adopted brothers or sisters, aunt or uncle
You are also deemed an eligible family member if you are either the:
- Current or former spouse, partner or civil partner of anyone listed above
- Child of the current or former spouse, partner or civil partner of anyone listed above
Complete details on how to apply can be accessed on the GOV.UK website here.