Many working-age grandparents, who are not already making National Insurance payments or are obtaining National Insurance credits, could qualify for Class 3 National Insurance credits for looking after children aged under 12 which can be used to top up their income in retirement.
In 2016 it is thought that less than 2% of eligible relatives claimed the credits and it is believed that this is because such credits have not been well publicised.
Each year of caring for a child under 12 qualifies the relative for an additional £231 of annual pension (or about £4,600 assuming a 20 year retirement).
Any close relative can apply for the National Insurance credits, however, it is most likely to be a grandparent as long as they’re under pensionable age.
Backdated claims are available for families who believe they may have missed out. It is possible to back date to 2011.Last modified on