Martin Lewis’ MSE reveals ‘little known’ grandparents are missing out on £1,000
MARTIN Lewis’ MoneySavingExpert (MSE) has revealed how grandparents can get thousands of pounds of free money.
MSE explained how people can get help through specified credits for adult childcare.
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It’s essentially compensation for under-state pension age grandparents who care for their grandchildren while their parents are at work – and they’re worth £300 a year.
The credits count towards National Insurance Contributions (NICs) for those who are not otherwise working.
This is important because you need at least 10 years of NI payments or credits to qualify for the state pension and at least 35 years to receive the full amount.
Grandparents and any family member can apply for these discounts for their AOW entitlement for the previous tax year.
Those who provided childcare in previous years can have their claim back to 2011, when the scheme started.
An MSE reader wrote on the website that he found out he could qualify after watching an episode of the Martin Lewis Money Show.
They said: ‘I was short on National Insurance contributions for almost two years and told I had to pay more than £1,000 to make up for it.
“After seeing your program after Specified Childcare Credit, I filled out the form while I babysat my grandchildren two days a week.
“I received confirmation this week that the years are now full and that I do not have to pay anything to receive my full state pension next June.”
Applications can go back to 2011, even if some of it involved virtual care during the pandemic.
Who is eligible for the credits?
To be eligible for the ‘Specified adult childcare allowance’ the carer (or grandparent) must be under the state pension age, which is currently 66.
Martin added: “You can’t get it if you are already of state pension age, but if you have reached state pension age and are not getting the full pension and you have done childcare before you reached state pension age, then you can date it back.
“So if grandparents take care of the children, they might be able to increase their pension.”
The child being cared for must also be under the age of 12, or 17 if they have a disability.
The carer must live in England, Scotland, Wales or Northern Ireland.
However, you are not eligible if you live in the Channel Islands or the Isle of Man.
Crucially, you will only be eligible if the child’s parent is entitled to child benefit and has a year of National Insurance eligibility, without needing the parent’s Class 3 National Insurance credits, which he or she automatically receives from child benefit.
You can consult your national insurance information at the gov.uk website to see if there are any gaps in your contributions.
This way you can check which benefits you are entitled to
The quickest way to see what benefits you can claim is to use one of the three benefits calculators recommended by Gov.uk.
They are all free to use. They are:
Before using the tools, make sure you have important financial information to hand, such as bank and savings statements and information about pensions and existing benefits.
If you live with a partner or family, collect their basic financial details as well, as this may affect your claim.
For each of these, you will be asked to provide information about your circumstances, such as your current employment and income.
You will also need to provide information about yourself, including your age and who you live with.
You can then use the contact details at Government.uk to get the ball rolling and apply for what you’re owed.
Of course, the tools only provide an indication of the benefits you can claim – and usually do not include means-tested benefits, so you may be entitled to even more.
What do I get?
The amount of credit you receive depends on how long you have been caring for your grandchildren.
Each annual credit is worth 1/35 of the value of the state pension, which currently stands at around £300 per year.
This means that if you have been caring for your grandchildren since 2011, you can expect to receive the full £3,300 towards your state pension.
To find out how much you should get, multiply the number of years you care for your grandchild by $300.
How do I claim the credits?
It’s not that easy to get these credits because claiming them means parents are transferring their child support credits to someone else.
Only one grandparent or family member can receive the credit and the credit does not apply per child but per child benefit applicant.
For example, if two grandparents care for their daughter and her child, only one credit is available and the daughter must decide which grandparent gets it.
But if the grandparents also care for their daughter’s child and their son, there are likely to be two child benefit recipients.
This allows you to apply for credits form on the government website.
After you have entered your details, the child’s parent (or main caregiver) must also agree to your application by co-signing the form.
If you need help, you can call the National Insurance Helpline on 0300 200 3500.
Do you have a money problem that needs to be solved? Get in touch by emailing money@the-sun.co.uk.
Moreover, you can join us Sun Money chats and tips Facebook group to share your tips and stories.