Grandparents who provide childcare for grandchildren under the age of 12 are being encouraged to check their eligibility for a National Insurance credit that could increase their State Pension. These Specified Adult Childcare National Insurance credits can help fill gaps in a grandparent's National Insurance record.
The credits are not a direct cash payment for childcare. Instead, they can potentially boost the State Pension a grandparent receives, particularly if their working hours have been reduced or they have stopped working to provide care.
For the 2026/27 tax year, the full new State Pension is £241.30 per week. An additional qualifying year under the new State Pension system commonly adds around one thirty-fifth of the full rate, which is approximately £6.89 a week, or just over £358 a year. Over a 20-year retirement, this could amount to more than £7,000 before future State Pension increases.
To be eligible, the grandparent must have been aged 16 or over but below State Pension age when care was provided, and ordinarily resident in the UK. The child's parent or main carer must have claimed Child Benefit and agree to transfer the credit, as they may not need it themselves.
Applications for care provided during the 2025/26 tax year can be made from 31 October 2026. Claims can also be made retrospectively for eligible childcare provided as far back as 6 April 2011.