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Looking after grandchildren?

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Grandfather and grandson play lying on grass, aerial view

Looking after grandchildren?

Grandparents caring for grandchildren under 12 could qualify for National Insurance credits that can top up their income in retirement.

Many working-age grandmothers and fathers could qualify for Class 3 National Insurance credits for looking after children aged under 12 – which can be used to top up their income in retirement.

Half of Britain’s 7 million working-age grandparents have a grandchild under the age of 16.

Working parents can give up the Child Benefit credits they receive and donate them to their child’s grandparents or other adult family members for the previous tax year. Grandparents and parents must apply for the credits to be transferred.

Top grandparent facts

Top grandparent facts include:

  • 1 in 4 working families and 1 in 3 working mothers use grandparents for childcare
  • 63% of all grandparents with grandchildren under 16 help out with childcare
  • 1 in 5 grandmothers provide at least 10 hours a week of childcare
  • the proportion of grandparents who are of working age is set to grow as the retirement age gradually rises

More information

Applications for NI credits for caring for children under 12 need to be made to HM Revenue & Customs (HMRC) and must be signed by both the adult carer and the Child Benefit recipient. Applications need to be made in the October following the end of the tax year in which the caring took place.

The credit is a Class 3 National Insurance credit and protects entitlement to basic State Pension and bereavement benefits for spouses and civil partners.

There is no minimum requirement for the number of hours of care in a week as long as the credit is transferred for a full week. For details of who can apply and how, visit here or phone the National Insurance Helpline on 0845 302 1479.

The new flat-rate State Pension, set above today’s means-tested support, is designed to provide certainty to people about what they will get in retirement. It will benefit women, and also the self-employed, who are currently excluded from qualifying for state second pension.

Figures in this release come from the Grandparents Plus briefing paper on grandparental childcare and their publication Doing it all?