Grandparents looking after kids this October half term could boost state pension by £7,000

Grandparents who help look after their grandchildren this October half term could help boost their state pension by thousands of pounds. This trick involves parents signing over unused National Insurance Credits to the grandparents to help them plug any gaps in their National Insurance record. It does not matter how long you look after the child for, as there is no set hours to qualify - and you can backdate claims to 2011. This means you may still qualify even if you no longer provide childcare.

Each extra qualifying year can increase a recipient’s state pension by around £350 per year, according to Quilter, meaning an income boost of more than £7,000 over the course of a typical retirement. To see more of the stories you love from The Mirror and to find them easily in Google then make us your preferred source. Free and easy-to-do, just click on the link here to find more from The Mirror at the top of your feed. In order to claim Specified Adult Childcare Credits, you must have been under state pension age when you were caring for the child.

The state pension age is 66 but rising to 67. The child must have been under the age of 12, or 17 if the child has a disability. The parent of the child needs to be entitled to Child Benefit as they will be transferring the National Insurance Credit that they usually get with this, to the grandparent. The parent should make check their own state pension forecast to make sure they don't need the National Insurance credits. If the parent is not working enough or does not have a full National Insurance record in that tax year, they may need the credit themselves.

Most people need 35 qualifying National Insurance years - some will need more - to claim the full new state pension. You typically need ten years to receive anything at all. This means if you have gaps in your record, you may not qualify for the full state pension. It is also worth noting that other relatives can qualify for Specified Adult Childcare Credits, including aunties or uncles, or anyone who regularly looks after a child. Quilter claims Specified Adult Childcare Credits could potentially increase your state pension by £328 annually.

Over a standard retirement, this could translate to a financial benefit of over £6,000. It adds that 123,138 people have successfully claimed for Specified Adult Childcare Credits. To claim Specified Adult Childcare Credits, the people involved need to fill out form CA9176 on GOV.UK. Both the parent and grandparents will need to sign the form.