How does Specified Adult Childcare Credit work for grandparents?

Full answer

When a parent claims Child Benefit for a child under 12, they automatically receive National Insurance credits towards their State Pension for each week they are not otherwise earning enough NI. If the parent is working and already has a full NI record for the year (or has opted out of the Child Benefit payment itself due to the High Income Child Benefit Charge but still submitted the claim), those credits can go unused. **How the credit transfer works** Specified Adult Childcare Credit allows the parent to transfer their unused Class 3 NI credit to a family member -- typically a grandparent -- who provided care for the child while the parent was working, provided that family member is under State Pension age and does not already have a full NI record for that year. **Eligibility conditions** - The child must have been under 12 (under 17 if disabled) during the period claimed. - The family member must have cared for the child for at least one full week (a week runs Monday to Sunday, or Sunday to Saturday in Scotland). - The parent must have been entitled to Child Benefit for that child and must consent to the transfer. - The family member must not already have a qualifying year from their own employment or other credits for that tax year. - Claims can be backdated to April 2011, when the scheme started, subject to record availability. **Worked example: Sarah cares for her grandson** Sarah, 62, is not working and has two gaps in her NI record. Her daughter works full-time and claims Child Benefit for her son, but as a higher earner she already builds a full NI record through her job, so her Child Benefit NI credit goes unused. Sarah looked after her grandson two days a week for the whole of 2024/25. Sarah's daughter applies for Specified Adult Childcare Credit on Sarah's behalf using form CA9176. HMRC transfers the Class 3 credit to Sarah, filling one of her gap years and adding roughly £6.89/week (£358/year) to her eventual State Pension. **How to claim** Apply using form CA9176 (available on gov.uk), which must be signed by both the parent (who is giving up the credit) and the family member (who is receiving it). Processing can take several months, and claims are usually made after the end of the relevant tax year, not during it.

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