Martin Lewis has shared a 'little known benefit' that could help grandparents who look after their grandchildren.
The Money Saving Expert highlighted Specified Adult Childcare credits, which can be claimed by family members who care for a child under 12, usually whilst their parent is working. The credits can help build up National Insurance contributions and can add 'thousands of pounds' to a state pension, Martin said.
Taking to Twitter to share his wisdom, he wrote: "Pls share. There's a little known benefit for grandparents who look after their grandchildren while parents work. If ur a parent of an under 12, if your parent (ie childs grandparent) do childcare so you can work, u can apply to get em "Specified Adult Childcare Credit."
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"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." He then shared a link to the government page which explains the benefit in full.
So how do Specified Adult Childcare credits work, who is eligible to claim them and how do you apply for them?
What do the credits mean?
The recipient will receive a Class 3 NI credit for each week or part week they cared for the child. These help to build entitlement to the State Pension and, until April 2017, certain bereavement benefits.
They can also help to stop gaps in your National Insurance record.
Who can apply for Specified Adult Childcare credits?
According to the government, the following must be applicable in order for you to apply for the benefit:
- 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
- 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
The child’s parent or main carer must agree to your application by countersigning the form to confirm that you cared for their child for the period stated and that you can have the Class 3 NI credit for the period stated.
How do you apply for Specified Adult Childcare credits?
An application form must be filled out in order to sign up for the benefit. It will require the personal details of the applicant, the child’s details and the periods of care and the personal details of the child’s parent or main carer.
Both the applicant and the parent must sign their declarations on the application. Specified Adult Childcare credits can be awarded retrospectively, to 6 April 2011 at the earliest, but the government cannot accept applications for a particular tax year until the following October at the earliest.
Find out more about Specified Adult Childcare credits and apply for the benefit here.
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