Money Saving Expert founder Martin Lewis has shared a handy tip for grandparents - or other family members - who look after children while their parents are at work. Throughout the cost of living crisis, the financial guru has been very vocal in offering his support and advice to the public.
But as the situation worsens, even Martin himself has struggled to reassure people at times. In late September, for example, he was left "lost for words" as he was unable to help a Good Morning Britain viewer with their mortgage market woes. Despite this, he has persisted in trying to aid Brits in any way he can, and today shared a benefit called 'Specified Adult Childcare Credit', North Wales Live reports.
Writing on Twitter, Martin stated: "Please share. There's a little known benefit for grandparents who look after their grandchildren while parents work. If you're a parent of an under-12, if your parent (i.e. child's grandparent) does the childcare so you can work, you can apply to get them 'Specified Adult Childcare Credit'".
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He added: "This means they get the National Insurance years that normally go to a parent who is off work looking after children (as you're working you'll usually be getting from work). This can add £1,000s to a state pension".
These Specified Adult Childcare credits can be awarded retrospectively, as far back as April 6, 2011. It says on the Gov.uk website: "The Gov.uk website explains: "We cannot accept applications for a particular tax year until the following October at the earliest. For example, for the tax year 2018 to 2019 applications must not be made until October 2019. This is because we need to check the parent already has a qualifying year for National Insurance purposes, and that can take until the October."
How will it benefit you?
Specified Adult Childcare credits will help build up your National Insurance contributions. This means:
- You will receive a Class 3 NI credit for each week or part week you cared for the child (Class 3 NI credits help to build entitlement to the State Pension and, until April 2017, certain bereavement benefits)
- It can help to stop gaps in your National Insurance record
Who is eligible?
You can apply for Specified Adult Childcare credits if:
- You are a grandparent, or other family member caring for a child under 12
- You were over 16, and under state pension age when you cared for the child
- You are ordinarily resident in the United Kingdom, meaning England, Scotland, Wales and Northern Ireland, but not the Channel Islands or the Isle of Man
- The child’s parent (or main carer) is entitled to Child Benefit and has a qualifying year for National Insurance without needing the parent’s class 3 NI credits which they receive automatically from Child Benefit (they can check their National Insurance record online to see if they have any gaps in contributions).
How to apply?
To apply for Specified Adult Childcare credits you will need to complete an application form. The application requires the:
- Personal details of the applicant – the family member caring for the child
- Child’s details and the periods of care
- Personal details of the child’s parent (or main carer) – the Child Benefit recipient
- Applicant and the parent must both sign their declarations on the application.
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