More than 150,0001 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.
NI credits were introduced from April 2011. You may be entitled to receive these NI credits if you are a grandparent, or other family member, who cares for a child under 12.
Previous research by Age UK indicates that two-fifths (40%) of the nation's grandparents over the age of 50 have provided regular childcare for their grandchildren.
Under new State Pension rules, you need at least 10 qualifying years on your National Insurance record to get any State Pension. You need 35 qualifying years to get the full new State Pension, or a proportion between 10 and 35 qualifying years.
For someone who can boost their credits from 30 to 35 years that could be equivalent to £1,514 per year more than they receive when they retire.
|
SACC |
Applications approved |
Applications rejected |
Total applications received |
|
Oct 21 – Sept 22 |
17,329 |
4,194 |
21,523 |
|
Oct 20 – Sept 21 |
15,927 |
3,148 |
19,075 |
|
Oct 19 – Sept 20 |
15,007 |
3,088 |
18,095 |
|
Oct 18 – Sept 19 |
15,412 |
3,389 |
18,801 |
|
Oct 17 – Sept 18 |
10,084 |
3,140 |
13,224 |
|
Oct 16 – Sept 17 |
9,486 |
4,061 |
13,547 |
|
Oct 15 – Sept 16 |
1,298 |
206 |
1,504 |
|
Oct 14 – Sept 15 |
1,168 |
181 |
1,349 |
|
Oct 13 – Sept 14 |
1,725 |
832 |
2,557 |
|
Oct 12 – Sept 13 |
498 |
198 |
696 |
|
Total |
90,549 |
23,259 |
113,808 |
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.“
Notes to Editors
This information is for the sole use of journalists and media professionals, and has not been approved by St. James’s Place Financial Promotions. Any calculations shown are for illustration purposes only and are not guaranteed. Actual investment returns may be lower than those illustrated.