Are you eligible for Grandparents Childcare Allowance?

Going back to work after having children is something that many Mums are having to do. Of course, many of us love working, and as much as we love our children, we need our working lives too. But one of the main barriers for getting back to work is the cost of childcare. With nursery fees averaging a whopping £6,600 per year, it’s no wonder that many of us are turning to our parents for help with childcare.

I’m extremely fortunate to work from home, but I do still need childcare for my youngest child. The older two are more than happy to entertain themselves whilst I work, but my four-year-old doesn’t quite understand that Mummy’s working and can’t play. During term time there’s no problem, I work whilst they’re all at school and then again in the evenings once my husband gets home. But like many parents, the school holidays bring a few hurdles for us to jump over! We’ve got a bit of a system in place these days where my parents help me out four mornings each week, and my husband is off another day, I generally just have to muddle through and manage on a Tuesday, so I can’t really complain! I would honestly be completely lost without the help of the grandparents, and I know we’re not alone.

What is Grandparents Childcare Allowance?

If you’re a grandparent of working age caring for a child under the age of 12, then you could be entitled to National Insurance credits (known as Specified Adult Childcare National Insurance Credits) to boost your retirement income.

The idea is that this allowance will top up your National Insurance credits whilst you’re caring for your grandchildren rather than working. The theory is that by providing childcare, you’re providing just much to society as you would do if you were still working, so you shouldn’t miss out on any National Insurance contributions you would have made if you’d continued to work.

These Specified Adult Childcare National Insurance Credits could be worth an extra £250 per year when you reach retirement age, which could add up to thousands of pounds over the years when you’re claiming your pension.

Working parents can give up the Child Benefit credits they receive and donate them to their child’s grandparents or other adult family members for the previous tax year. Grandparents and parents must apply for the credits to be transferred. https://www.gov.uk/government/news/looking-after-the-grandchildren-make-sure-it-counts-towards-your-state-pension

There is no minimum requirement for the number of hours you care for your grandchildren, so even if you only have them a few hours a week, it may still be beneficial to claim.

How to claim Specified Adult Childcare National Insurance Credits

Unfortunately, only a really small proportion of eligible grandparents are currently claiming these credits, so thousands of people are missing out!

If you think you might be eligible for the Grandparents Childcare Allowance, then you will need to apply to HMRC directly. You’ll need to do this with the person who receives child benefit for the children (usually Mum or Dad), so it’s a good idea to talk this through with them first.

You can find out more about the eligibility requirements here – https://www.gov.uk/national-insurance-credits/eligibility.