State pensioners who are grandparents can be handed free £6,000 from DWP

New data has revealed that just 150,000 people have taken advantage of the credits since 2011 - despite 12 million people claiming state pensions.

State pensioners who are grandparents could be boosting their State Pensions by a whopping £6k. New data has revealed that just 150,000 people have taken advantage of the credits since 2011 - despite 12 million people claiming state pensions.

Grandparents who regularly care for their grandchildren can get specified adult childcare credits (SACCs), introduced in 2011. 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. Despite over 12 million people in the UK claiming state pension, only around 150,000 applications for SACCs have been made in the past eight years, according to HM Revenue and Customs (HMRC) data.

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In total, applicants can see their state pension increase by £328 per year, or around £6,000 across an average retirement period. 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.

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, and the child’s parent or main carer agrees to your application.