Claire Trott, Divisional Director for Retirement and Holistic Planning at St. James’s Place, comments on the amount of state pension that grandparents may be missing out on in Specified Adult Childcare credit.

More than 150,000 grandparents could be missing out on a vital state pension uplift, according to St. James’s Place (SJP). 

HMRC received more than 21,000 Specified Adult Childcare credits (SACC) applications last year according to data obtained by SJP from HMRC following a Freedom of Information (FOI) request. However, SJP estimates that the number of applications received is less than a ninth of the number of grandparents who could be eligible to receive the National Insurance (NI) credits.

Claire Trott, Divisional Director for Retirement and Holistic Planning at St. James’s Place, comments: 

The State Pension is the cornerstone for many when planning for retirement, so it is crucial to make sure you have accrued enough NI credits. With so many grandparents helping out with childcare it’s important to remember you don’t have to sacrifice your state pension to lend a hand and support your family.

For those who are subject to the High Income Child Benefit tax charge it can be tempting to not claim NI credits to save hassle, but for those whose parents are helping to take care of their children, it can be a great way to support them in the future. If you’re earning national insurance in your own right, you can pass on the credit to a parent if needed. It is a simple process, but the child benefit needs to be claimed, although a tick of a box means no payment will be made and so no tax charge will be incurred.”

There are also other ways to top up your state pension if you are not eligible for the SACC, such as regular payments or purchasing missing years, which is currently possible back to 2006. The State Pension is good value and shouldn’t be dismissed.

Full release: More than 150,000 grandparents could be missing out on vital state pension uplift

✉️ Andrew McLagan, St. James’s Place, 07795 306666 / andrew.mclagan@sjp.co.uk