Grandparents who are providing care may be eligible for HMRC help
Older people looking after children under 12 during the summer holidays could get a boost to their State Pension payments from the HMRC. It could be worth £303 – and, incredibly, over a span of 20 years, that could potentially boost finances by more than £6,000.
It 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 roughly £303 per year.
As highlighted by the Daily Record, for each week or part of a week that you 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.
READ MORE: ‘Act now’ warning to anyone on benefits after DWP rule changes approvedREAD MORE: Accessible toilet change as people told they’re ‘not disabled enough’
For example, if two grandparents looked after 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 so, 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.
Who the National Insurance benefit is designed to help
The details of the scheme might look intimidating, but it’s meant for those who look after kids while the parents work, excluding the need for National Insurance credits from Child Benefit towards their State Pension. It’s worth pointing out that retrospective claims for Specified Adult Childcare can be backdated to 6 April 2011.
READ MORE: ‘I’ve been hoarding supplies in case of war and we’ll need it by 2030’READ MORE: Couple’s four-star Spain hotel break ruined by note from ‘sunbed police’
During the Covid-19 pandemic, if you cared for someone even via phone, text, or video call, you could claim Specified Adult Childcare credits to cover any National Insurance record gaps, as suggested by GOV.UK for the tax years 2019 to 2020 and 2020 to 2021.
To receive the full New State Pension – currently at £230.25 per week or an annual sum of £11,973 – typically around 35 years of National Insurance contributions are required.
A minimum level of 10 years of contributions is needed for a basic entitlement. However, this may vary, especially for individuals who were “contracted out”. Find out more here.
Eligibility criteria for the HMRC grandparent support
The criteria for application says you need to be
- 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
- The parent (or primary carer) of the child has claimed Child Benefit but does not require the credits themselves
- You are ordinarily resident in the UK, excluding the Channel Islands or the Isle of Man
Approval from the child’s parent (or primary carer) through their signature validating your application, ensuring you:
- Are entitled to the credits for the stated period
- Provided care for their child during the specified period
Eligible family members include those who are the:
- Grandparent, great-grandparent or great-great-grandparent.
- Mother or father who does not reside with the child.
- Brother or sister – this includes half-brothers or half-sisters, step-brothers or step-sisters, adopted brothers or sisters, aunt or uncle
Additionally, eligibility extends if you happen to be either the:
- Child of the current or former spouse, partner or civil partner of anyone listed above
- Current or former spouse, partner or civil partner of anyone listed above
You can find the complete procedure for application on the GOV.UK website here.