Grandparents caring for their grandchildren this February half-term may qualify for National Insurance Credits that can increase their state pension by up to £6,600.
In the UK, grandparents caring for their grandchildren during the February half-term can benefit from Specified Adult Childcare Credits, which may significantly enhance their state pension. These credits are aimed at individuals under the state pension age, currently at 66, and could add an extra £6,600 to their pension over a 20-year retirement. This is particularly relevant for those who may be taking on childcare responsibilities, as it provides a financial incentive for their caregiving role.
The Specified Adult Childcare Credits allow these grandparents to fill any gaps in their National Insurance record, thus increasing their future pension income. Research indicates that transferring the credit can contribute an additional £330 per year in state pension income for the 2025/26 period. This initiative acknowledges the important role grandparents play in child-rearing and seeks to provide them with financial support in their retirement years.
However, to qualify, grandparents must have been under the state pension age during their caregiving period, and the grandchildren must be under 12 years old, or under 17 if they have a disability. This reflects a growing understanding of the economic contributions made by informal caregivers, highlighting the importance of fostering supportive policies that recognize and reward their efforts in supporting families and the economy at large.
