Grandparents’ Childcare Credit: A Little-Known Way to Increase Your State Pension

Grandmother caring for her young grandchild while helping support the family and build State Pension entitlement

Many grandparents play an important role in helping their families by providing regular childcare while parents work. What many people don’t realise is that this support could also help improve their future retirement income.

Through a government scheme known as Specified Adult Childcare Credits, eligible family members may be able to receive National Insurance credits that count towards their State Pension entitlement.

For those with gaps in their National Insurance record, these credits could make a valuable difference to the amount of State Pension they receive in later life.

What Is the Grandparents’ Childcare Credit?

The Grandparents’ Childcare Credit is a form of National Insurance credit available to family members who care for children under the age of 12 while the child’s parent or guardian is working.

National Insurance credits help build qualifying years towards your State Pension. If you have missing years on your National Insurance record, your State Pension may be lower than the maximum amount available.

By claiming childcare credits, you may be able to fill some of those gaps and increase your future pension entitlement.

Who Can Qualify?

You may be eligible to claim if:

You cared for a child under the age of 12.
You were aged 16 or over but below State Pension age at the time.
The child’s parent or guardian was working.
The parent was entitled to Child Benefit.
You lived in the UK during the period childcare was provided.

Although commonly referred to as the Grandparents’ Childcare Credit, the scheme is not limited to grandparents.

Other relatives who may qualify include:

Grandparents
Great-grandparents
Aunts and uncles
Older brothers and sisters
Other eligible family members

Why National Insurance Credits Matter

Your State Pension is based largely on your National Insurance contribution record.

If you do not have enough qualifying years, you may receive less than the full State Pension.

National Insurance credits can help by:

Filling gaps in your contribution record
Increasing your State Pension entitlement
Improving retirement income
Providing additional financial security in later life

Even a single qualifying year can increase the amount you receive throughout your retirement.

How Does the Scheme Work?

When a parent claims Child Benefit for a child under the age of 12, they may receive National Insurance credits if they are not earning enough through employment to qualify for them automatically.

However, if the parent is working and building their own National Insurance record through employment, those credits may not be needed.

In these circumstances, the credits can often be transferred to a family member who has been providing childcare.

This allows the relative who helped care for the child to benefit from the National Insurance credits instead.

Check Your State Pension Forecast

Before applying, it is a good idea to review your State Pension forecast and National Insurance record.

This can help you determine whether additional qualifying years could increase your future pension.

If you already qualify for the full State Pension, extra childcare credits are unlikely to provide any further benefit.

However, for those with missing years, the scheme may offer a valuable opportunity to improve retirement income.

Can Claims Be Backdated?

Yes.

One of the most attractive features of the scheme is that eligible claims can be backdated to April 2011.

This means you may still qualify even if:

The child is now older than 12.
You are no longer providing childcare.
Several years have passed since the childcare took place.

In some situations, individuals who have already reached State Pension age may still benefit if the childcare occurred while they were below State Pension age.

How to Apply

Grandparents’ Childcare Credits are not awarded automatically.

To make a claim, you will generally need to provide information about:

The child you cared for
The parent receiving Child Benefit
The dates childcare was provided
The family member claiming the credit

In most cases, both the claimant and the Child Benefit recipient will need to sign the application.

Providing accurate information can help ensure the claim is processed correctly.

A Valuable Opportunity Many Families Overlook

Thousands of grandparents and family members provide childcare every week without realising they may be entitled to additional National Insurance credits.

For those who have gaps in their contribution record, this little-known benefit could help increase their State Pension and improve long-term financial security.

If you have helped care for a grandchild or another young family member since 2011, it may be worth checking whether you qualify.

Elderly person discussing Power of Attorney documents with family members and a legal adviser

15 Jun 2026