Article How caring for your grandkids could boost your State Pension

Caring for your grandchildren could help boost your State Pension. Specified Adult Childcare credits can add qualifying years to your National Insurance record, increasing how much you receive in retirement – especially if you claim for multiple or backdated years.

The cost of childcare is relatively high. The average fee for a full-time nursery place for a child under two is £189 a week in England, around £133 a week in Scotland and around £166 a week in Wales.¹ Because of these high costs, you might be one of the many grandparents who now provide regular childcare for their grandchildren while parents are working.

But while you save your family money on nursery fees, did you know that you could also earn money from your childcare arrangement, too?

If before reaching State Pension age, you care (or cared) for a young family member while their parents were at work, there's a little-known credit called Specified Adult Childcare credits that could boost your State Pension.

We break down what these are, the eligibility criteria and how you can apply. The information in this article is based on our understanding of the 2026/2027 tax year, but any figures may be subject to change.

What are Specified Adult Childcare credits?

Specified Adult Childcare credits are a type of National Insurance (NI) credit. They can be awarded to grandparents or other family members who care for a child under 12 while the child’s main parent or guardian is working.

As an NI credit, Specific Adult Childcare credits count towards your State Pension entitlement. You need at least 10 years’ worth of National Insurance contributions (NICs) to qualify for any State Pension, and at least 35 years’ worth to get the full new State Pension. For the 2026/2027 tax year, it’s £241.30 per week.²

So, if you’re not currently eligible for any State Pension, adding Specified Adult Childcare credits might help you to qualify and significantly increase your retirement income.

How do Specified Adult Childcare credits work?

Specified Adult Childcare credits work by transferring NI credits from one person to another. The credits are originally attached to the parent or carer who claims Child Benefit for the child.

These credits are then transferred and attached to the grandparent or family member providing childcare in the form of Specified Adult Childcare credits.

It’s worth noting though that there’s only one credit for each Child Benefit claim – not each child. And you can only receive them if the child’s main carer or parent doesn’t need them themselves.

Here’s an example:

• You provide regular childcare for your grandson, Billy
• Your daughter Sally (Billy’s mother) currently claims Child Benefit for Billy – she  also receives the NI credits attached to the Child Benefit
• Sally chooses to transfer these NI credits to you, as Specified Adult Childcare credits
• Sally no longer receives NI credits, but continues to claim Child Benefit
• You continue to receive Specified Adult Childcare credits for as long as you’re eligible

If no one’s claimed Child Benefit for the child, then there’s no attached NI credit to transfer and Specified Adult Care credits can’t be awarded.  You can read up on Child Benefit on Gov.uk.

Remember to keep in mind that any parent or guardian receiving Child Benefit, receives NI credits. If the parent or guardian then agrees to transfer these credits to the child’s grandparent as Specified Adult Childcare credits, they’ll miss out on these NI credits.

So, be sure that the parent (or main carer) of the child doesn’t need these NI credits for themselves, before agreeing to transfer them to you.

Who is eligible for Specified Adult Childcare credits?

You can qualify for Specified Adult Childcare credits if you meet the following criteria:

• You’re a grandparent or family member, caring for a child under 12 years old
• You’re over the age of 16 and under State Pension age when you cared for the child
• You’re a 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 doesn’t need the credit themselves
• The child’s parent (or main carer) agrees to you making the application (they’ll need to countersign the application form)

How much could I get?

Specified Adult Childcare credits can help you build up your NI record. If you qualify, you’ll receive a Class 3 NI credit (class 3 credits count towards building your State Pension only) for each week or part-week that you cared for a child. You can also backdate your claim credits to 6 April 2011, when the scheme began.

How much you’ll gain from these credits will depend on your individual circumstances. For the 2026/27 tax year, each qualifying year on your National Insurance record after April 2016 adds around £6.89 a week, based on the full new State Pension rate.

While this might not seem like a lot, this money could build up over time. The difference could be especially significant if you have more than one qualifying year added to your NI record or can backdate your claim by several years.

How do I apply for Specified Adult Childcare credits?

To apply for Specified Adult Childcare credits, you need to fill in a form called CA9176.

The application requires:

• Personal details of the applicant
• Details of the child receiving childcare and what the periods of care are
• Personal details of the child’s parent or guardian
• The applicant and parent must both sign declarations on the application

The earliest you can apply is 31 October following a particular tax year.

Don’t miss out on a State Pension boost

The State Pension can be a welcome addition to any private pension or savings you may have. So, if you’re not currently eligible for the full State Pension amount, then Specific Adult Childcare credits could make all the difference. 

For more information of eligibility and details of how to apply, you can find this at Gov.uk.