State pension alert: Grandparents could boost sum by £2,340 amid triple lock freeze | Personal Finance | Finance
State pension payments are often vital, and consequently, many will be hoping for the full sum. This usually hinges on National Insurance contributions, and to get any state pension at all, 10 qualifying years are typically required.
Those hopeful of unlocking the full sum will usually need 35 years of eligible contributions.
However, there are many reasons as to why a person may not be able to get the full amount.
Low-paid work, not working at all, or even leaving the country for certain periods of time could all affect one’s National Insurance record.
This could be rectified by grandparents in certain circumstances.
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By using Specified Adult Childcare Credit, a parent can sign over these NI credits to a grandparent or other person looking after the child.
The process can be enacted without cost, and serves as a win-win for all those involved.
Even great-grandparents, aunts and uncles, as well as brothers and sisters can benefit.
The Government explains: “Specified Adult Childcare credits can be awarded retrospectively.
“This is to April 6, 2011, at the earliest.”
Experts therefore estimate grandparents could benefit to the tune of an equivalent £2,340.
Britons should be aware applications for a particular tax year cannot be accepted until the following October at the earliest.
This is because the Government needs to check the parent already has a qualifying year for National Insurance purposes.
To apply for the Specified Adult Childcare Credit, parents will need to take action.
Filling in the specific form is the best course of action, and requires the:
- Personal details of the applicant – the family member caring for the child
- Child’s details and the periods of care
- Personal details of the child’s parent (or main carer) – the Child Benefit recipient
- Applicant and the parent to both sign their declarations on the application.
