Thousands of grandparents caring for their grandchildren over the summer holidays could be missing out on the chance to boost their future State Pension.
Many working-age grandmothers and fathers could qualify for Class 3 National Insurance credits for looking after children aged under 12 – which can be used to top up their income in retirement.
Many grandparents are working hard all year round looking after their grandchildren, and it is important that they do not damage their own state pension rights as a result. Such grandparents are contributing to society just as much as someone in a paid job and should therefore be entitled to the same protection for their state pension as if they were in work.
The new system of transferable National Insurance credits means that grandparents need no longer lose out on building up a full state pension just because they are caring for a grandchild.
Applications for NI credits for caring for children under 12 need to be made to HM Revenue & Customs (HMRC) and must be signed by both the adult carer and the Child Benefit recipient. Applications need to be made in the October following the end of the tax year in which the caring took place.
Grandparents who have cared for their grandchildren during the tax year 2011/12 are able to apply for their credits now.
The credit is a Class 3 National Insurance credit and protects entitlement to basic State Pension and bereavement benefits for spouses and civil partners.
There is no minimum requirement for the number of hours of care in a week as long as the credit is transferred for a full week. For details of who can apply and how, visit www.gov.uk/national-insurance-credits/eligibility or phone the National Insurance Helpline on 0845 302 1479.