Grandparents could be in for a £6,000 windfall to their State Pension this half term thanks to a Department for Work and Pensions (DWP) scheme amidst the soaring Cost of Living.
Eligible grandparents caring for grandchildren can apply for "specified adult childcare credits" which provide National Insurance (NI) credits for those not in employment such as retired individuals. A minimum of 10 years' worth of NI contributions is needed for some State Pension benefits and 35 years' for the entire amount.
Financial experts Quilter have suggested the NI credits could spell an increase of over £6,000 during an average 20-year retirement. Money Savings Expert guru Martin Lewis has relayed success stories from pensioners who've padded out their pensions handsomely using the said credits.
Highlighting the impact, one grateful individual shared with Martin Lewis: "Martin, I can't thank you enough for this. This describes our circumstances perfectly. My wife retired five years early to help with our young grandchildren. She was four years short of full state pension. We will now save £3,000 from not having to buy the missing years," via a message.
To qualify for Specified Adult Childcare credits, you must be a grandparent or a family member looking after a child under 12, between 16 and State Pension age at the time of caring, and a UK resident, reports BirminghamLive.
You can apply if the child's parent (or primary caregiver) is eligible for Child Benefit and has a qualifying year of National Insurance (a full year where they have been credited with enough NICs to count towards a Basic State Pension), and if the child's parent (or main caregiver) consents to your application (they'll need to co-sign the application form).
However, you won't qualify if you already have a qualifying year of National Insurance, or if you're the one receiving Child Benefit for the child (as you'll be getting credits automatically). For more details on eligibility, you can check this out on GOV.UK
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