Grandparents caring for grandkids could see a £300 boost in State Pension this year

Pensioners with grandchildren could be entitled to an extra £300 from the Government. Older people who provide care for children under 12 are able to boost their State Pension payments as part of a National Insurance perk.

Over a typical 20-year retirement, the top-ups from HM Revenue and Customs (HMRC) could equate to more than £6,000. As reported by the , a single extra National Insurance credit currently adds around £303-a-year on to the full New State Pension.

The State Pension top-up, known as Specified Adult Childcare, operates by transferring the National Insurance credit linked to Child Benefit from the recipient of the benefit to a family member caring for a related child under 12, or 17 if they have a disability.

A Class 3 National Insurance credit is awarded for each week or part week you cared for the child. However, only one credit is available per Child Benefit claim, regardless of the number of children included in the claim.

For instance, if two grandparents cared for their daughter's two children, only one credit is available for transfer and the recipient of the Child Benefit must decide who receives the credit.

Yet, if the grandparents also have a son and care for both their daughter's and son's children, there are likely two Child Benefit recipients and thus, two credits available for transfer. If no one has claimed Child Benefit for the child, there is no attached National Insurance credit to transfer and credits cannot be granted.

While it may seem complex, essentially the boost is only available for those caring for children whose parents are working, meaning they don't require the National Insurance credits from claiming Child Benefit for their own State Pension.

It's also important to note that retrospective claims for Specified Adult Childcare can be made dating back to April 6, 2011.

Claiming for providing remote care during the Covid-19 pandemic

According to guidance on GOV.UK, from March 2020, your usual caring arrangements may have been disrupted by COVID-19.

This implies that if you offered care, even remotely via phone, text message or video call during the pandemic and subsequent lockdowns, you might be able to fill any gaps in your National Insurance record by claiming Specified Adult Childcare.

This is applicable to the tax years 2019 to 2020 and 2020 to 2021.

The full New State Pension is currently valued at £221.20 per week, equivalent to £11,502 annually, but to receive this maximum amount you require approximately 35 years' worth of National Insurance contributions. You need a minimum of 10 years to receive any payment at all.

Some individuals may have been 'contracted out' and will require more than 35 years - find out more .

Who is eligible to apply for Specified Adult Childcare credits?

You can apply provided:

• You are a qualifying family member who cared for a child under 12
• You were over 16 and below State Pension age when you cared for the child
• You are ordinarily resident in the UK but not the Channel Islands or the Isle of Man
• The child's parent (or primary carer) has claimed Child Benefit but does not require the credits themselves.

The child's parent (or primary carer) consents to your application by counter-signing the form to confirm that you:

• Cared for their child for the period stated
• Can have the credits for the period stated.

Who is considered an eligible family member?

You fall under the category of an eligible family member if you are:

• The non-residential mother or father
• A grandparent, great-grandparent or great-great-grandparent
• A brother or sister - this includes half-brothers or half-sisters, step-brothers or step-sisters, adopted brothers or sisters, aunts or uncles.

Furthermore, you are also deemed an eligible family member if you are either:

• The current or former spouse, partner or civil partner of anyone mentioned above
• The child of the current or former spouse, partner or civil partner of anyone mentioned above.

Who should not apply?

You should abstain from applying for credits during the same period if you:

• Already have a qualifying year of National Insurance - typically because you are employed or receive other National Insurance credits
• Are receiving Child Benefit for any child and already obtain credits automatically.

If you are the spouse or partner living with the Child Benefit recipient and wish to transfer the credits to yourself, you need to fill out form CF411A - more details can be found .