Skip to Navigation

Grandparents ‘missing out on state pension boost’

Around 90,000 grandparents and family members could be missing out on the national insurance credit that boosts their state pension.

In a freedom of information request, Royal London found that 9,486 family members claimed the credit in the year to September 2017.

While this was a significant increase on the previous year, it only represents around 1 in 10 of those who could be entitled to help, according to Royal London's estimates.

The scheme, known as the specified adult childcare credit, is available to family members who are under state pension age and are looking after a child under the age of 12 while the parent goes back to work.

It allows the parent to sign over the national insurance credit they receive as part of child benefit to the family member who is caring for the child.

This could add up to £230 a year to the amount of state pension they receive in retirement.

Steve Webb, director of policy at Royal London, said:

"It is right and proper that when grandparents sacrifice their own working life to help a family member get back to work, they should not also damage their own state pension prospects.

"We believe there are tens of thousands more grandparents who could be entitled to benefit and would encourage more of them to find out about the scheme and to make a claim."

Speak to us about your personal tax planning.