More than 202,000 grandparents have applied for Specified Adult Childcare Credits (SACCs) since 2016, with around four-fifths approved, according to data from HM Revenue and Customs (HMRC). The credits can boost State Pension entitlements for those providing childcare for children under 12.
Application Numbers and Approval Rates
Data obtained by Quilter via a freedom of information request shows that between the 2016-17 and 2024-25 tax years, 202,037 applications were made for SACCs. Of these, 159,116 (79%) were approved. Applications jumped from 29,967 in 2022-23 to 42,964 in 2023-24, following media coverage that raised awareness of the scheme.
How the Credits Work
The credits are designed for people below state pension age to build up their state pension rights by filling gaps in their National Insurance (NI) records. They work by transferring the weekly NI credit a parent or carer receives as a child benefit recipient to an eligible family member who provided care for a child under 12. The parent or main carer must not need the NI credits themselves.
Jon Greer, head of retirement policy at Quilter, said: “For many people, securing the full state pension is a key foundation of later life income, and these credits can offer grandparents a relatively simple way to strengthen their entitlement while helping family with childcare. However, the data also highlights that a significant number of applications remain unsuccessful, which points to a need for clearer guidance around eligibility and how the system works in practice.”
Backdating and COVID-19 Remote Care
Claims can be backdated to April 6, 2011. Additionally, for the 2019-20 and 2020-21 tax years, care provided remotely during the COVID-19 pandemic—over the phone, by text, or video call—may also qualify.
The full New State Pension is currently £221.20 per week (£11,502 per year), requiring about 35 years of NI contributions. At least 10 years are needed for any payment.
Eligibility and Application Process
Applicants must be an eligible family member (e.g., grandparent, sibling, aunt, uncle) who provided care for a child under 12, be over 16 and under state pension age, and be ordinarily resident in the UK (excluding Channel Islands and Isle of Man). The child’s parent or main carer must have claimed Child Benefit and agree to transfer the credits.
Applications should be made after October 31 following the end of the tax year claimed. HMRC guidance advises the parent or main carer to check their NI record online before applying.
