Monday, December 5, 2022

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Martin Lewis shares tips that could add thousands to your pension

Martin Lewis has warned grandparents could be missing out on thousands of pounds in state pension funds if they look after their grandchildren while their parents work.

Taking to Twitter, the MoneySavingExpert (MSE) founder revealed yet another financial saving for households during a crippling cost-of-living crisis: “There’s a little-known benefit to grandparents caring for their grandchildren while parents work. If you [sic] a parent of a child under the age of 12, if your parent (i.e. the child’s grandparents) are caring for children to enable you to work, you may apply for a Specified Adult Childcare Credit.

“That means they get the Social Security years that would normally go to a parent who is unemployed and caring for children (since you work, you usually get from work). This can add £1,000 to a state pension.”

Mr Lewis is referring to compensation available to grandparents under statutory retirement age known as Specified Adult Childcare Credits.

Other family members looking after the children while the parents work can also receive these £300 a year credits.

For those who are not gainfully employed, they count as social security contributions.

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.

According to the government website, the benefit works by transferring the NI balance associated with child support from the child support recipient to a designated adult.

Who is Eligible?

The grandparents or family members do not have to have reached the statutory retirement age of 66 years.

The child must be under 12 years old, or under 17 if disabled.

You must be a resident of the UK, ie England, Scotland, Wales and Northern Ireland, but not live in the Channel Islands or the Isle of Man.

The child’s parent must be eligible for child support and have an eligible year of Social Security.

You can apply for the fixed credits for adult care here.

If you need help you can call the national insurance hotline on 0300 200 3500.

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