Here’s one for the family group chat…
If your mum, dad, or in-laws regularly help out with the kids; whether it’s after school or during the school holidays, there’s a little-known way they could actually get a decent top-up to their pension. It’s backed by HMRC, and it could be worth thousands over time.
It’s called Specified Adult Childcare Credits, and most people have never heard of it.
So what’s it all about?
Basically, if a parent is working and claiming Child Benefit, they usually get something called National Insurance (NI) credits. These credits go towards their state pension. But if they don’t need the credits – because they’re already working and paying NI – they can pass them on to someone else who’s helping care for the child.
That someone can be a grandparent, an aunt, uncle, older sibling… as long as they’re under state pension age (currently 66) and they’ve looked after the child during that tax year.
It doesn’t have to be full-time care either – even one day a week could count.
What’s in it for them?
Every year they qualify, they could get around £330 added to their state pension. Over a 20-year retirement, that’s more than £6,600. All for something they’re already doing anyway – helping out with the kids.
And here’s the best bit – you can backdate claims all the way to April 2011. So if your parents have been helping since your eldest was born, there could be years’ worth of credits waiting.
Who qualifies?
Here’s a quick rundown:
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The person must be under 66
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They’ve looked after your child under 12 (or under 17 if they have a disability)
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You’ve claimed Child Benefit for that child
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You agree to transfer the NI credit to them
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They don’t already get a credit for that year from something else (like being in work or on benefits)
How do they apply?
It’s not too complicated. There’s a form called CA9176 on the GOV.UK website. You (the parent) fill in your part, and the grandparent (or whoever’s claiming) fills in theirs. Then you post it off to HMRC.
You can only apply after the tax year ends, so for the 2024/25 year, you’d need to wait until 31 October 2025. But if you’re claiming for previous years, you can crack on now.
Why it matters
A full state pension needs 35 years of NI credits. Lots of people – especially those who took time out of work to raise kids or care for family – don’t have enough years. These childcare credits can fill in the gaps for free. No need to pay for voluntary contributions.
It’s an easy win, and it’s money in their pocket when they retire.
Real talk
Let’s be honest – most grandparents don’t help out with the kids for financial gain. They do it because they love their grandkids, and they want to support us. But if there’s a way to give them a financial boost down the line, just for doing what they’re already doing, why wouldn’t we help them claim it?
Most people don’t even know this scheme exists. So if it sounds like something your family could benefit from, it’s well worth having the conversation.
Quick checklist
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Do your parents or in-laws help with childcare?
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Are they under 66?
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Have you claimed Child Benefit for your child?
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Have they got gaps in their NI record?
If you’ve ticked yes to most of those, head over to GOV.UK and search Specified Adult Childcare Credits. Or just google “CA9176 form” and it’ll pop up.
Honestly, it could make a big difference to their retirement.
If you end up helping your parents claim it, let us know – we’d love to hear how it went. And if you’ve got any questions, drop them in the comments and we’ll try to help.
Pass it on. 👵👴💰
