Glossary · UK
What is Specified Adult Childcare Credit?
A National Insurance credit that lets a working parent transfer the Class 3 NI credit they get from claiming Child Benefit to a grandparent or other family member who provides childcare instead.
Full Definition
Specified adult childcare credit is a National Insurance credit aimed principally at grandparents, or other family members, who provide childcare for a child under 12 (under 17 if the child has a disability) so that the child's parent can work. When a parent claims Child Benefit, they normally receive a Class 3 National Insurance credit automatically, which counts toward their State Pension even in a year they are not working or paying NI; but where that parent is already earning enough to build a qualifying year through their own employment, the credit attached to their Child Benefit claim would otherwise go to waste. Specified adult childcare credit lets the parent formally transfer that spare NI credit to the family member who is actually providing the childcare, helping the grandparent or relative build up qualifying years toward their own State Pension in return for the informal childcare they provide, filling gaps that might otherwise arise from having left paid work early or reduced their hours to help with childcare. The application, made directly to HMRC using form CA9176, must be made jointly by the parent claiming Child Benefit and the family member receiving the credit, and can normally be backdated to cover earlier tax years back to 2011/12, when the credit was introduced.