HMRC £6,000 Financial Boost for Elderly People: Who provide Care for Children under 12 During term-time or School Holidays

HMRC £6,000 Financial Boost for Elderly People: Did you know that elderly people who care for children under 12 could increase their State Pension by over £6,000 during retirement? It’s all thanks to a benefit called Specified Adult Childcare credits, offered by HMRC (His Majesty’s Revenue and Customs).

If you’re a grandparent, uncle, aunt, or other eligible relative caring for a child—especially when parents are working—you might be able to claim National Insurance (NI) credits, even retrospectively back to 2011.

Let’s understand how it works and how to apply.

What Are Specified Adult Childcare Credits?

These are Class 3 National Insurance credits that can be transferred to you if you care for a related child under 12 (or under 17 if the child has a disability), and the parent receiving Child Benefit doesn’t need the NI credit themselves.

These credits can increase your State Pension by about £303 per year. Over a typical 20-year retirement, that adds up to more than £6,000.

Who Is Eligible?

You can apply if:

• You cared for a child under 12 (or under 17 with disability)
• You were aged 16 or above and under State Pension age when caring
• You are a UK resident, not living in the Channel Islands or the Isle of Man
• The parent (or main carer) has claimed Child Benefit but doesn’t need the credit for their own pension
• The parent agrees and signs the form to confirm that you provided the care

Who Counts as an Eligible Family Member?

You qualify if you’re the:

• Grandparent, great-grandparent or great-great-grandparent
• Aunt or uncle
• Brother or sister (includes half/step/adopted)
• Mother or father who does not live with the child

You’re also eligible if you’re:

• The current or former partner, husband, or wife of any of the above
• The child of the current/former spouse or partner of any of the above

Important Rules to Note

Don’t apply if you already:

• Have a qualifying year of National Insurance (e.g. you’re working or already receiving NI credits)
• Receive Child Benefit yourself and get NI credits automatically

If you’re living with the parent who receives Child Benefit and want to transfer the credit, you’ll need to fill form CF411A.

How Many Credits Can Be Transferred?

Only one credit per Child Benefit claim can be transferred—even if multiple children are involved. So, if two grandparents care for two children under one Child Benefit claim, only one credit can be transferred.

But if you care for children from two different families (e.g. daughter’s child and son’s child), two credits may be possible—one per Child Benefit recipient.

What About Covid-19 Disruptions?

If you provided remote care during the pandemic—via calls, texts, or video chats—you may still be eligible for NI credits for tax years 2019–2020 and 2020–2021. So, it’s worth checking!

How and When to Apply

You can apply retrospectively as far back as the 2011/12 tax year, and applications must be made after 31 October following the end of the relevant tax year.

What You’ll Need:

• Your personal details
• The child’s details and care periods
• Details of the Child Benefit recipient
• Signatures from both you and the parent confirming the care

Before applying, the child’s parent should check their National Insurance record online to ensure they have credits available to transfer.

This little-known scheme could make a huge difference to your future income. If you’ve been helping care for young children while their parents work, you might be sitting on thousands of pounds in extra pension benefits.

Claiming your Specified Adult Childcare credits is not only worth your time—it’s a smart way to fill any gaps in your National Insurance record and secure your full State Pension.

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