Anyone with grandchildren under 12 urged act now to add £6k to state pension | Personal Finance | Finance

The NI credits work by transferring the weekly National Insurance credit a parent or carer gets, as the Child Benefit recipient, to an eligible family member. 

Quilter said ever year of transferred credit currently adds £330 in extra state pension income for 2025/26, which is £6,600  over a 20-year retirement.

What are specified adult childcare (SAC) credits?

They are Class 3 National Insurance credits are were introduced on 6 April 2011. You can claim them from that date. You may be entitled to these credits if both:

• you are an eligible family member who provided care for a child
  aged under 12
• their parent or main carer does not need the credits themselves

These credits work by transferring the weekly National Insurance credit a parent or carer gets, as the Child Benefit recipient, to an eligible family member. They can help to stop gaps in your National Insurance record. You will get a Class 3 National Insurance credit for each week or part week you provided care for the child.

There is only one credit available for each Child Benefit claim, no matter how many children are on the claim itself.

For example, if 2 grandparents provided care for their daughter’s 2 children, there is only one credit available for transfer. The Child Benefit recipient must decide who should have the credit.

If the grandparents provided care for their daughter’s child and their son’s child, there are likely to be 2 Child Benefit recipients. This means 2 credits are available for transfer.

If no one has claimed Child Benefit for the child, there is no attached National Insurance credit to transfer. This means credits cannot be awarded.

Who can apply?

You can apply as long as:

• you are an eligible family member, who provided care for a child
  aged under 12
• you were aged 16 years and over, but under State Pension age, when you provided care for the child
• you are ordinarily resident in the UK, but not the Channel Islands or the
  Isle of Man
• the child’s parent or main carer has claimed Child Benefit, but does not need the credits themselves
• the child’s parent or main carer agrees to your application

The child’s parent or main carer must countersign the form to confirm they agree that, for the period stated, you:

• provided care for their child
• can have the credits

Who counts as an eligible family member

You are classed as an eligible family member if you are the:

• mother or father who does not live with the child
• grandparent, great-grandparent or great-great-grandparent
• aunt or uncle
• brother or sister

A brother or sister can include:

• a half-brother or half-sister
• a step-brother or step-sister
• an adopted brother or an adopted sister

You are also classed as an eligible family member if you are either the:

• current or previous spouse, partner or civil partner of anyone in the list
• son or daughter of the current or previous spouse, partner or civil partner of anyone in the list

You should not apply for credits if, for the same period, you:

• already have a qualifying year of National Insurance — usually because you work or get other National Insurance credits
• are receiving Child Benefit for any child and already get credits automatically

If you are the spouse, partner or civil partner living with the Child Benefit recipient and want to transfer the credits to yourself, you need to complete form CF411A.