Specified adult childcare credits (SACCs) are designed to help eligible people below state pension age build up their state pension rights and plug gaps in their national insurance (NI) records
Grandparents providing childcare support could qualify for valuable credits capable of enhancing their state pension entitlement. Numerous grandparents will be stepping forward to assist families by looking after children throughout the summer break.
Financial adviser and wealth manager Quilter revealed that 202,037 applications for specified adult childcare credits (SACCs) have been submitted between 2016-17 and 2024-25. Approximately four-fifths (79%) or 159,116 received approval, underlining the significant contribution these credits make towards strengthening retirement finances.
Quilter secured the data through a freedom of information (FOI) request submitted to HM Revenue and Customs (HMRC). Applications surged from 29,967 recorded in 2022-23 to 42,964 in 2023-24.
The HMRC response indicated that the substantial rise in applications during that period followed media attention which heightened public awareness of the programme. The credits are intended to assist individuals below state pension age in accumulating their state pension entitlements and can address shortfalls in national insurance (NI) records.
How grandparents can qualify
The credits function by transferring the weekly NI credit that a parent or carer obtains as a child benefit recipient to a qualifying family member.
Individuals may qualify for the credits if they delivered care for a child aged under 12 and the parent or primary carer does not require the NI credits themselves. Quilter stated the statistics also demonstrate why maintaining a child benefit claim could prove beneficial, as withdrawing completely may result in no NI credits being available for transfer.
The firm noted that these credits can be especially valuable in filling gaps within NI records that frequently occur during periods away from employment, which can disproportionately impact women.
Jon Greer, head of retirement policy at Quilter, commented: “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. With childcare costs continuing to rise, grandparents are playing an increasingly important role in supporting working families.
“Ensuring they are able to access the pension benefits linked to that support remains an important part of the wider retirement system. As childcare costs continue to rise and families rely more on informal support, ensuring these credits are properly understood and used will only become more important.”
Quilter explained that applications may be declined for various reasons, including claimants already possessing a qualifying year of NI, frequently due to continued employment or receipt of alternative credits.
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