Older people with grandchildren could boost State Pension payments by more than £6,000 during retirement years
23.04.2024 - 09:22
/ dailyrecord.co.uk
Older people providing care during term-time or school holidays for children under the age of 12 may be able to boost State Pension payments by more than £6,000 over a typical 20-year retirement period. A single extra National Insurance credit currently adds around £303-a-year on to the full, New State Pension.
The State Pension top-up is known as Specified Adult Childcare and works by transferring the National Insurance credit attached to Child Benefit from the Child Benefit recipient to a family member who is providing care for a related child under 12, or 17 if they have a disability. You will receive a Class 3 National Insurance credit for each week or part week you provided care for the child, but there is only one credit available for each Child Benefit claim - no matter how many children are on the claim itself.
For example, if two grandparents provided care for their daughter’s two children, there is only one credit available for transfer and the Child Benefit recipient must decide who should have the credit.
However, if the grandparent’s also have a son and provide care for their daughter’s child and their son’s child, there are likely to be two Child Benefit recipients and therefore, two credits are 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 might sound a bit complicated, but essentially the boost is only available for looking after children whose parents are working, so they don't need the National Insurance credits from claiming Child Benefit to go towards their own State Pension.
It’s also worth noting that you can put in a retrospective claim for Specified Adult Childcare going back to
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