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Specified Adult Childcare credits: Claim up to £250 a year if you look after your grandchilden/nephews/nieces
662° Expired

Specified Adult Childcare credits: Claim up to £250 a year if you look after your grandchilden/nephews/nieces

36
Posted 18th May 2019

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An estimated 1 million grandparents can get credits worth £250 a year in pension credits if they spend any time at all looking after their children's children - but only a tiny fraction of them are claiming.

The scheme is designed to help out family members who are looking after children under 12 while the child’s parents are out.

It works because people claiming child benefit automatically also receive a National Insurance credit, so they don't miss out on their state pension for taking time off work to raise their children.

Each credit is currently worth £250 a year on your state pension, you generally need 35 years' worth built up to get the full amount.

But large numbers of parents don't need the free credit, as they get one from their work already.

This system lets parents transfer their National Insurance credit from them, to someone else who's looking after their children.

The better news is that there is no minimum requirement for hours spent caring, and you can even back-date claims to when the scheme was first introduced in 2011.

The scheme is officially known as the "specified adult childcare credit". So people such as uncles and aunts can also claim it - provided they spend time looking after their nephewsor neices.

A Department for Work and Pensions (DWP) spokesman said: "The number of people receiving specified adult childcare credits has risen substantially since they were introduced in 2011.

"We encourage everyone who might benefit to apply for the credits to which they're entitled and extensive information on how to apply can be found on gov.uk."
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A Department for Work and Pensions (DWP) spokesman said: "The number of people receiving specified adult childcare credits has risen substantially since they were introduced in 2011.

not many people flew planes prior to the invention of them also... etc.
To good to be true must be a catch(skeptical)
36 Comments
To good to be true must be a catch(skeptical)
Someone's been reading the Mail on Saturday.
Unless I'm reading this incorrectly, they transfer the £250 from the child benefits the parents receive.

Specified Adult Childcare credits work by transferring the NI credit attached to Child Benefit from the Child Benefit recipient to a family member who is providing care for a related child under 12. Therefore, if no one has claimed Child Benefit for the child there is no attached NI credit to transfer and Specified Adult Care credits cannot be awarded.
Unfortunately no good for me and my wife. Our son in law earns too much money and therefore my daughter cannot claim child benefit. When we tried to claim this last year, we were rejected because of the wage ceiling and no child benefit being claimed.
flintstone18/05/2019 17:42

Unless I'm reading this incorrectly, they transfer the £250 from the child …Unless I'm reading this incorrectly, they transfer the £250 from the child benefits the parents receive.Specified Adult Childcare credits work by transferring the NI credit attached to Child Benefit from the Child Benefit recipient to a family member who is providing care for a related child under 12. Therefore, if no one has claimed Child Benefit for the child there is no attached NI credit to transfer and Specified Adult Care credits cannot be awarded.


I looked at this as I looked after my grandchildren during school holidays and when needed to drop off and pickup from school, even overnight sometimes. I’m not working now and was told I could claim NI credits towards my pension.
The parent claiming family allowance is entitled to NI credits whether they are working or not. IF they are working AND paying enough National Insurance they are not using their NI credit. They can transfer theirNI credits to the family member looking providing childcare for them.
However, having looked into this myself, it is far too cumbersome. They want to know what dates you looked after them. From my perspective I couldn’t remember exactly what days or weeks I’ve looked after my grandchildren over the last eight years and didn’t bother applying.
There is a lot of rubbish written here. It is easy to claim for everyone, no dates are required other than the year the help was provided and doesn't take anything off the parents allowances. I have successfully claimed this since it was introduced, it takes about 10 minutes to fill out the form, normally in October for the previous financial year. 2018/19 will be my last as I will then have entitlement to full state pension. The requirements are that the parents both pay sufficient NI not to require the pension credits themselves, this is checked anyway, and the helping relative who gets the credit transferred to them must be below state pension age.
flintstone18/05/2019 17:42

Unless I'm reading this incorrectly, they transfer the £250 from the child …Unless I'm reading this incorrectly, they transfer the £250 from the child benefits the parents receive.Specified Adult Childcare credits work by transferring the NI credit attached to Child Benefit from the Child Benefit recipient to a family member who is providing care for a related child under 12. Therefore, if no one has claimed Child Benefit for the child there is no attached NI credit to transfer and Specified Adult Care credits cannot be awarded.



Yes you have read it incorrectly.
robinsonthegateways18/05/2019 19:10

I looked at this as I looked after my grandchildren during school holidays …I looked at this as I looked after my grandchildren during school holidays and when needed to drop off and pickup from school, even overnight sometimes. I’m not working now and was told I could claim NI credits towards my pension.The parent claiming family allowance is entitled to NI credits whether they are working or not. IF they are working AND paying enough National Insurance they are not using their NI credit. They can transfer theirNI credits to the family member looking providing childcare for them. However, having looked into this myself, it is far too cumbersome. They want to know what dates you looked after them. From my perspective I couldn’t remember exactly what days or weeks I’ve looked after my grandchildren over the last eight years and didn’t bother applying.



They don't need the dates just the years. i just put 6th April 17 to 5th April 18 last year and it worked fine. This assumes that no other grandparent is claiming it.
This really isn’t what it sounds like unfortunately. Basically if you ain’t working cos ya cba have some more free money.
Terry_Brownmpz18/05/2019 19:09

Unfortunately no good for me and my wife. Our son in law earns too much …Unfortunately no good for me and my wife. Our son in law earns too much money and therefore my daughter cannot claim child benefit. When we tried to claim this last year, we were rejected because of the wage ceiling and no child benefit being claimed.


If its the £50k ceiling can't he pay in to a pension instead (ideally his employer paying in directly) wife and I have done same to keep below the limit.
MrKrabs18/05/2019 20:54

If its the £50k ceiling can't he pay in to a pension instead (ideally his …If its the £50k ceiling can't he pay in to a pension instead (ideally his employer paying in directly) wife and I have done same to keep below the limit.


Only if you’re £50-£60k. Once you’re £60,001 you get diddly squat which seems a bit ridiculous. I take Salary sacrifice at the maximum £124 a month for childcare vouchers. The net effect of that is quite substantial but HMRC won’t have it, they simply say you’re not eligible and you can either stop receiving child benefit of receive it and repay it via a tax code adjustment next year. I’ll be damned if I can be bothered to fill in another self assessment.
I think most people know the catch that's why they aren't claiming it. They are transferring some funds from what the parent would normally get to the grandparent.
My understanding of how this works

The child is under 12

The parent is paying NI contributions from their employment

The parent is claiming child benefit

As this includes a NI contribution that is not required

The parent can allow this to be claimed by e.g. Grandparents

This makes a difference to those retired before full pension age

Especially if their previous employer had opted out & they face a reduced state pension.

It won’t pay a full years missing payment currently £780 ish

But it will put a dent in it.

Get a State Pension forecast to see how you stand.
Edited by: "LFishpond" 18th May 2019
A Department for Work and Pensions (DWP) spokesman said: "The number of people receiving specified adult childcare credits has risen substantially since they were introduced in 2011.

not many people flew planes prior to the invention of them also... etc.
ms200518/05/2019 21:37

Only if you’re £50-£60k. Once you’re £60,001 you get diddly squat which see …Only if you’re £50-£60k. Once you’re £60,001 you get diddly squat which seems a bit ridiculous. I take Salary sacrifice at the maximum £124 a month for childcare vouchers. The net effect of that is quite substantial but HMRC won’t have it, they simply say you’re not eligible and you can either stop receiving child benefit of receive it and repay it via a tax code adjustment next year. I’ll be damned if I can be bothered to fill in another self assessment.


The issue for me is that it’s on one parent only, if you have two parents earning 45k each, a total of 90k you’re still getting the full amount of benefit , if you have one earning 65k and the other 18k, you get less total income and no benefit from the state...and you’re losing more to tax. Seems a bit harsh.
Terry_Brownmpz18/05/2019 19:09

Unfortunately no good for me and my wife. Our son in law earns too much …Unfortunately no good for me and my wife. Our son in law earns too much money and therefore my daughter cannot claim child benefit. When we tried to claim this last year, we were rejected because of the wage ceiling and no child benefit being claimed.


Your son in law or daughter can still claim child benefit, they will just need to repay it via a self assessment the following year. You’ll then be able to claim pension credits
Good find. Nice to educate people on the resources available for THOSE who really need it.
I work full time on a low wage and my wife part time.
My parents have looked after 2 kids for about 10 hours a week since 2011.
Does this mean my parents can claim about £2k for 8 years of care with no effect on my income/state pension? If so it's a no brainer.
Edited by: "Jonnyblock" 19th May 2019
I'm thinking of claiming this for the period I looked after my grandchildren but my daughter is worried it will affect the free childcare allowance she gets or her tax credits. Will it affect her in any way?
I am not sure of the ins and outs of this but I work 3 days a week my mum takes care of my kids and has done for years. I claimed this for her last year back to 2011 and she got it accepted. I just checked my state pension forecast and every year is showing as a full year of credits for me so I seem to be unaffected & my mum obviously has gained some credits.
Bull. My parents are looking after my brother 8 year old. They have gone to court and have full custody. The mother is a sap, and my brother is a drip, not being a responsible parent. He won’t pay my parents anything towards her either and hasn’t for the 8 years. He’s 29, my parents 67 and 69. They can’t claim a thing and they are on pension only. My brother has said take me to court for csa which now they are going to do. System is a joke how my parents can’t claim a thing yet expected to pay out their pension
Edited by: "villians1984" 19th May 2019
ms200518/05/2019 21:37

Only if you’re £50-£60k. Once you’re £60,001 you get diddly squat which see …Only if you’re £50-£60k. Once you’re £60,001 you get diddly squat which seems a bit ridiculous. I take Salary sacrifice at the maximum £124 a month for childcare vouchers. The net effect of that is quite substantial but HMRC won’t have it, they simply say you’re not eligible and you can either stop receiving child benefit of receive it and repay it via a tax code adjustment next year. I’ll be damned if I can be bothered to fill in another self assessment.


Is tax free childcare available in your area? This is for people who earn less than £100k and is more advantageous if you earn between £60-£100k as you get £2,000/year per child credit where as childcare vouchers only provide £124/month regadless of the number of children.
Jonnyblock19/05/2019 11:01

I work full time on a low wage and my wife part time.My parents have …I work full time on a low wage and my wife part time.My parents have looked after 2 kids for about 10 hours a week since 2011. Does this mean my parents can claim about £2k for 8 years of care with no effect on my income/state pension? If so it's a no brainer.


This isn't a cash payment. If your parents are below state pension age and not working (thus not receiving any NI credits), you can transfer the credits received via child benefit to them.
That is assuming both you and your wife are paying NI and so don't need the credits from the child benefit payments.
False advertising this and all the other tax credit incentives, it costs more to administer, it’s a complete false economy and your tax is paying for it, VAT & Income Tax won’t stay at 20% and it won’t go down either.
villians198419/05/2019 15:10

Bull. My parents are looking after my brother 8 year old. They have gone …Bull. My parents are looking after my brother 8 year old. They have gone to court and have full custody. The mother is a sap, and my brother is a drip, not being a responsible parent. He won’t pay my parents anything towards her either and hasn’t for the 8 years. He’s 29, my parents 67 and 69. They can’t claim a thing and they are on pension only. My brother has said take me to court for csa which now they are going to do. System is a joke how my parents can’t claim a thing yet expected to pay out their pension


Child Tax Credits should have been in payment, any child maintenance willingly or court sanctioned doesn’t affect CTC rates.

You didnt even need full custody for CTC just a letter from councils social work dept to support the claim you are the guardian.
simandoo19/05/2019 07:24

The issue for me is that it’s on one parent only, if you have two parents e …The issue for me is that it’s on one parent only, if you have two parents earning 45k each, a total of 90k you’re still getting the full amount of benefit , if you have one earning 65k and the other 18k, you get less total income and no benefit from the state...and you’re losing more to tax. Seems a bit harsh.


Well ye all southerns voted the Tories in. Cuts for everyone and tax breaks at the top, and cheap privatisation shares - didn’t Maggie so longteach you anything ?
Edited by: "seaniboy" 19th May 2019
seaniboy19/05/2019 18:21

Well ye all southerns voted the Tories in. Cuts for everyone and tax …Well ye all southerns voted the Tories in. Cuts for everyone and tax breaks at the top, and cheap privatisation shares - didn’t Maggie so longteach you anything ?


Maybe, but I'm not a southerner and I've never voted tory. That said, let's get back to deals. This is all heading fast towards brexit.
Terry_Brownmpz18/05/2019 19:09

Unfortunately no good for me and my wife. Our son in law earns too much …Unfortunately no good for me and my wife. Our son in law earns too much money and therefore my daughter cannot claim child benefit. When we tried to claim this last year, we were rejected because of the wage ceiling and no child benefit being claimed.


I think you should look into this in more detail. My understanding is that they could claim child benefit, but he would pay additional tax (High Income child benefit charge) of the same amount, if he earns above a certain amount, or they can fill out the form but then opt out of getting the child benefit. Then you should still be able to claim the NI credits, provided they're happy to nominate you. See here for details gov.uk/chi…rge
To those who don't understand national insurance credits; most benefits pay one NI stamp a week. This is not a monetary amount paid to the claimant, it is a stamp that is recorded on your HMRC national insurance record for future State Pension purposes.

Class 3 credits are not worth as much as Class 1 (paid via an employer) or Class 2 (paid if self employed) but they can help to keep a state pension up to date.

This scheme is really only of benefit to parents who either work and pay Class 1/2 contributions, or who claim another working age benefit and already get Class 3 credits that way. The grandparent would also need to be out of work, or not working enough to pay NI.
Can a parent claim this? My wife works and is the main carer (who receives the child benefit). I am self employed and not opted into paying a pension contribution. Can I use this for my NI contribution?
seaniboy19/05/2019 18:18

Child Tax Credits should have been in payment, any child maintenance …Child Tax Credits should have been in payment, any child maintenance willingly or court sanctioned doesn’t affect CTC rates. You didnt even need full custody for CTC just a letter from councils social work dept to support the claim you are the guardian.


They’ve asked social worker n they not helping at all. Just sayin they should be getting money from my brother. They ent helping one bit. Joke really
Rause
villians198423/05/2019 20:48

They’ve asked social worker n they not helping at all. Just sayin they s …They’ve asked social worker n they not helping at all. Just sayin they should be getting money from my brother. They ent helping one bit. Joke really


raise a official complaint that they should have been supporting a CTC claimwhen she was placed in their care
simandoo19/05/2019 19:34

Maybe, but I'm not a southerner and I've never voted tory. That said, …Maybe, but I'm not a southerner and I've never voted tory. That said, let's get back to deals. This is all heading fast towards brexit.



I
villians198423/05/2019 20:48

They’ve asked social worker n they not helping at all. Just sayin they s …They’ve asked social worker n they not helping at all. Just sayin they should be getting money from my brother. They ent helping one bit. Joke really


Thanks, will tell them of this, hopefully something gets sorted
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