Looking after the grandkids? Here's how it could pay off in retirement

One-in-four young children receive regular childcare from their grandparents, government data shows. Even 9% of children aged 12-14 are still often looked after by their grandparents. 

It’s easy to see why. The government does provide help with childcare costs for working parents. But even then, the average fee in 2026 for a full-time nursery place for a child under two is £149 a week in England.

While many grandparents are happy to help, there’s also a financial benefit you may not be aware of.

If you’re under State Pension age (currently 66, rising to 67 from 2028) and caring for a grandchild, you can claim Specified Adult Childcare credits. These can help you plug gaps in your National Insurance (NI) record and boost your State Pension.

It’s free, simple, and could make a big difference to your retirement income.

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What are Specified Adult Childcare credits?

Specified Adult Childcare credits are a type of NI credit. You can claim them if you’re caring for a grandchild or other family member under 12 while their parents are working. 

Most people build up their NI record through work, with each full year of employment counting as a qualifying year. You need at least 10 years to get any State Pension at all and 35 years to get the full new State Pension - currently £241.30 a week (2026/27).

But there are other ways to earn NI credits too. That includes claiming Child Benefit as a parent or receiving certain benefits. 

You might have gaps in your NI record if you take time out of work. That might be to raise children, care for a relative, or work part-time. Those gaps can reduce how much State Pension you’ll receive when you reach State Pension age (66 in 2026/27, rising to 67 by 2028). That’s why credits like this matter. 

A working parent can effectively earn two NI credits: one through work and one through claiming Child Benefit. But you can’t claim two credits a year - only one is added to your NI record. 

That’s where Specified Adult Childcare credits come in. These allow you to give your Child Benefit credit to a family member who’s caring for the child instead.

By caring for a grandchild or child under 12, you get a Class 3 NI credit for each week or part week you do so. These can make a real difference to filling in gaps to your NI record.

You can also backdate your claim to April 2011, when the scheme began. So, you could meaningfully boost your State Pension payments if you have gaps in your record.

Who qualifies for Specified Adult Childcare credits?

To claim these credits, you need to be:

• under State Pension age (use PensionBee’s State Pension Age Calculator to find out yours);
• a UK resident;
• caring for a child under 12; and
• giving that care while the child’s parent is working and claiming Child Benefit.

You don’t have to be a grandparent. Any family member who helps with childcare can claim if they meet the criteria above.

Why you should claim

52% of grandparents care for a child for free. That’s often in the years just before retirement, when there’s little time left to fill gaps in your NI record.

Before you apply, it’s worth checking your State Pension forecast so you know exactly where you stand. You’ll be able to see your current forecast, how many qualifying years you have, and whether you have any gaps. This will also show you whether Specified Adult Childcare credits would fill any of those holes. 

Missing just one qualifying year - so having 34 instead of 35 - could affect how much State Pension you receive over your entire retirement. 

Here’s an example of what could happen if you had one missing year in 2026/27.

At today’s rate, you could receive £234.41 a week, rather than the full new State Pension of £241.30. Over a year, you’d miss out on just under £360. Over a 20-year retirement, that adds up to £7,166.

You can make voluntary contributions to fill in missing years. But that can be expensive and there’s the chance you won’t live long enough to make that money back. 

Claiming Specified Adult Childcare credits for all the time you’ve spent looking after grandchildren is free and can make a big difference. And, because you can backdate it to April 2011, you could find this quickly fills up a missing year or two.

How to apply

Applying is straightforward. Here’s what to do:

1. Check the child’s parent is claiming Child Benefit and is working.

2. Download and fill in form CA9176 from HMRC. 

3. Get the working parent to sign the form.

4. Wait until 31 October after the end of the tax year you want to apply for to claim your credits.

Remember, you can claim the credits back to the 2011/12 tax year. So, it’s worth gathering details of all the time you’ve spent caring for children since then before you apply.

HMRC will then update your NI record once they’ve reviewed your application. Check your NI record on the government website.

Final thoughts

Claiming Specified Adult Childcare credits is a straightforward way to boost your State Pension, and it won’t cost you a penny. Many grandparents are sitting on unclaimed credits going back to 2011, without even realising it.

Start by checking your State Pension forecast at GOV.UK to see if you have any gaps in your NI record, and go from there. It could take as little as an hour and could mean thousands of pounds more in retirement. 

Ruth Jackson-Kirby is a Financial Journalist passionate about making money matters clear and accessible. She’s written for The Mail on Sunday, MoneyWeek, The Sun, and Good Housekeeping, helping readers navigate pensions and personal finance with confidence. She believes everyone deserves financial security and is on a mission to cut through jargon and make finance relatable.

Risk warning

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.