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Thousands of grandparents missing out on £231 a year - Under the rules of "grandparents' credit" if the parent goes back to work after the birth of a child they can sign a form that allows a grandparent to receive National Insurance credits
Thousands of grandparents missing out on £231 a year - Under the rules of "grandparents' credit" if the parent goes back to work after the birth of a child they can sign a form that allows a grandparent to receive National Insurance credits

Thousands of grandparents missing out on £231 a year - Under the rules of "grandparents' credit" if the parent goes back to work after the birth of a child they can sign a form that allows a grandparent to receive National Insurance credits

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Under the rules of "grandparents' credit", if a mother goes back to work after the birth of a child she can sign a form that allows a grandparent to receive National Insurance (NI) credits for looking after the child
Thousands of people who are helping to bring up their grandchildren could be missing out on valuable credits which would help to build up their pension, research has found.

A Freedom of Information (FOI) request submitted to HM Revenue and Customs (HMRC) by Royal London found only a low number of applications had been made for "grandparents' credit".

This could amount to a loss of more than £4,500 over a 20-year retirement - and thousands of people are missing out.

How does "grandparents' credit" work?
Under the rules surrounding specified adult childcare credits, if a mother goes back to work after the birth of a child she can sign a form that allows a grandparent, or other family member, to receive National Insurance (NI) credits for looking after the child.

Grandparents who give up their job to look after their grandchild could otherwise be losing out on their state pension rights.

If a working-age grandparent misses out on one year of state pension rights because they are spending time with a grandchild instead of doing paid work, this would cost them one 35th of the full rate of the state pension or £231 per year.

It found that just 1,298 grandparents and other family members benefited in the year to September 2016.

The numbers have dwindled compared with two years earlier, when 1,725 were benefiting.

Royal London said its calculations suggest more than 100,000 grandparents of working age could benefit if the scheme was more widely known about.

The credits were introduced from 2011, and someone may be entitled to receive them if they are a grandparent or other family member who cares for a child aged under 12, usually while the child's parent is working.

Those eligible would be under state pension age when they cared for the child.

Former pensions minister Sir Steve Webb, who is now director of policy at Royal London, said: "Many families rely heavily on the support provided by grandparents to enable them to combine paid work and family life.
The fact that there is a scheme to make sure that grandparents do not lose out, by protecting their state pension rights, is a very good thing."

But the scheme is not much use if hardly anyone takes it up."Dr Lucy Peake, chief executive of charity Grandparents Plus, said: "Grandparents play a crucial role in caring for millions of children up and down the country, and are a lifeline to families squeezed by falling incomes and rising childcare costs

"When they give up their own jobs to help out, they shouldn't damage their future state pension in the process, and the system for making sure grandparents are protected in this situation needs to be much better publicised.

Top comments

Grandparents need rewarding more than £231 for looking after some of today's little brats.

BrianSewell

OP you need to change the clickbait title, as you well know this for … OP you need to change the clickbait title, as you well know this for grandparents who give up their job to look after grandchildren.You seem to have attracted the 'jobseeker' element of HUKD with your title, please remedy this



Why should the OP "remedy" anything to please you? The eligibility for this is made quite clear in the original post - not everything has to go in the title. People are quite capable of reading, dont you know?

Why make assumptions about jobseekers and "scroungers"? Are you deliberately trying to be rude or just trolling?

Banned

OP you need to change the clickbait title, as you well know this for grandparents who give up their job to look after grandchildren.
You seem to have attracted the 'jobseeker' element of HUKD with your title, please remedy this

rborob

What happens if the grandparents dont work?



That's the whole point, isn't it? It's aimed at grandparents who look after grandchildren instead of working
164 Comments

What happens if the grandparents dont work?

My mum is 70 (grandparent) my sister has 2 children and she is back in work, would this apply to my mum or not? Thanks.

bo9dster007

My mum is 70 (grandparent) my sister has 2 children and she is back in … My mum is 70 (grandparent) my sister has 2 children and she is back in work, would this apply to my mum or not? Thanks.



It says above those eligible would be under state pension age when looking after the child

Original Poster

rborob

What happens if the grandparents dont work?


I dont know, no harm in applying

rborob

What happens if the grandparents dont work?



That's the whole point, isn't it? It's aimed at grandparents who look after grandchildren instead of working

Grandparents need rewarding more than £231 for looking after some of today's little brats.

Banned

OP you need to change the clickbait title, as you well know this for grandparents who give up their job to look after grandchildren.
You seem to have attracted the 'jobseeker' element of HUKD with your title, please remedy this

I think i read this on the Martin Lewis email earlier today too, credit should probably go there OP....

furiousjammin

I think i read this on the Martin Lewis email earlier today too, credit … I think i read this on the Martin Lewis email earlier today too, credit should probably go there OP....


It was also on Radio 4 at least twice today

And on Radio 2's Jeremy Vine show today.

BrianSewell

OP you need to change the clickbait title, as you well know this for … OP you need to change the clickbait title, as you well know this for grandparents who give up their job to look after grandchildren.You seem to have attracted the 'jobseeker' element of HUKD with your title, please remedy this



Why should the OP "remedy" anything to please you? The eligibility for this is made quite clear in the original post - not everything has to go in the title. People are quite capable of reading, dont you know?

Why make assumptions about jobseekers and "scroungers"? Are you deliberately trying to be rude or just trolling?

Not a deal either, should be in misc or freebies.

Thanks OP, never heard of this and my MIL will benefit

I had a career break for 5 years, so didn't work. My partner continued to work, it was only last year that I realised her credits can be passed onto me. I filled in a form and my partners credits have been added to mine, so luckily I haven't got any gaps.

furiousjammin

I think i read this on the Martin Lewis email earlier today too, credit … I think i read this on the Martin Lewis email earlier today too, credit should probably go there OP....



Daily mail first broke the story as the guy from Royal London has a column with them.

What they don't tell you is that you is that this has been allowed long before 2011 by having the grandparent claim the child's child benefit.

tomwatts

Not a deal either, should be in misc or freebies.



So many of these have been posted over the years and since it helps a wide number of people it gets left in deals. Report it if you don't agree, but would say 99% that it will stay where it is.

Banned

Sidney1979

I had a career break for 5 years, so didn't work. My partner continued … I had a career break for 5 years, so didn't work. My partner continued to work, it was only last year that I realised her credits can be passed onto me. I filled in a form and my partners credits have been added to mine, so luckily I haven't got any gaps.


Why did you take a five year break?

Who cares about NI. Pension credits cover shortfalls.

My mother still works (part time) and picks up my children from school and cares for them until I get home from work, my daughter nursery. Would she be eligible?
Edited by: "eld1985" 18th Jan

Well spotted. I saw the same story on The Wright Stuff this morning. This afternoon we sent off the claim form for my wife to get two years worth of N.I. credits for caring for our grandson while his mum is at work.


Edited by: "markhiscock" 18th Jan

eslick

Daily mail first broke the story as the guy from Royal London has a … Daily mail first broke the story as the guy from Royal London has a column with them.What they don't tell you is that you is that this has been allowed long before 2011 by having the grandparent claim the child's child benefit.


Read this earlier too.....
appreciate the info :)
heat added anyway

Just read into it, working parents need to give up the NI credits they receive when they claim child benefit and transfer them to the grandparent doing the caring.

sussexdaz

And on Radio 2's Jeremy Vine show today.


I heard it there as well.

eld1985

Just read into it, working parents need to give up the NI credits they … Just read into it, working parents need to give up the NI credits they receive when they claim child benefit and transfer them to the grandparent doing the caring.


I was just going to post that
The parent has to give up the NI credits so the grandparents receive them - so the parent loses out

cuddlybear

I was just going to post thatThe parent has to give up the NI credits so … I was just going to post thatThe parent has to give up the NI credits so the grandparents receive them - so the parent loses out


The parent doesn't lose out. You get automatic NI credits if you claim child benefit, these are the credits that are passed on to the family member. The parent who is working still build up their NI contributions.

£231 a year, pension building?

Mrepg

Who cares about NI. Pension credits cover shortfalls.



Only if you have a small income in retirement. My wife for example does not work but I do and will hopefully get a pension that stops me getting pension credit. In that case she will still get a state pension in her own right regardless of income, that's what NI is for.

Also remember they may chance the rules at any time, so even if you think you've got enough years (35 I think) it's worth having more

Sidney1979

The parent doesn't lose out. You get automatic NI credits if you claim … The parent doesn't lose out. You get automatic NI credits if you claim child benefit, these are the credits that are passed on to the family member. The parent who is working still build up their NI contributions.


I guess its worth applying to see if we are eligible. They will either say yes or no

Nothing wrong with people using the system as designed (loopholes and all). Any problems with the current system need to be directed to the gov and not the people the system has been designed for!

BrianSewell

Why did you take a five year break?



Probably because child care is so expensive. If your on a low income it would probably cost you more than you earn to put the sprog in childcare or you just about break even. Plus 5 years of mooching around is nice.

666FU

Probably because child care is so expensive. If your on a low income it … Probably because child care is so expensive. If your on a low income it would probably cost you more than you earn to put the sprog in childcare or you just about break even. Plus 5 years of mooching around is nice.


Nothing as fun as that. I became ill whilst in work and tried to get better over the 5 years as I loved my job and wanted to keep it, luckily my partner worked so covered the bills. In the end I was medically retired. This helped to keep my NI record up to date.

horsepills

That's the whole point, isn't it? It's aimed at grandparents who look … That's the whole point, isn't it? It's aimed at grandparents who look after grandchildren instead of working


How about if the children don't have grandparents, shouldn't the hard working mum looking after kids get rewarded , so unfair

Banned

MrBeatnik

Nothing wrong with people using the system as designed (loopholes and … Nothing wrong with people using the system as designed (loopholes and all). Any problems with the current system need to be directed to the gov and not the people the system has been designed for!


Yes because we are an infantile population who take no responsibility for things like this. Just leave it to the 'government' it's not our problem...

And if a father goes back to work after the birth of a child, can he sign this form? #everydaysexism

I think tjis post may save me £3k. I am 4 years short and was going to buy them at £733/yr.

My mother is 89 and still working in Asda. Can she apply? She looks after little one during the day and works nights.

wenx

My mother is 89 and still working in Asda. Can she apply? She looks after … My mother is 89 and still working in Asda. Can she apply? She looks after little one during the day and works nights.


I think this is just a NI top up. Not an actual cash payment.
If you dont have 35 years of full NI contributions, then it will affect your pension. (Your mum would have come under different rules)

You can check it online with a Gov Gateway ID
https://www.gov.uk/check-national-insurance-record

As your mum is over retirement age, she would no longer pay NI or need NI credits & I assume already gets basic pension of around £115 or £155 a week if its a full pension. Basic to Full is when NI contributions come in (at least when us working now come to retire) - so you can see why getting your full worth of NI stamps is important. You need 35 full years to qualify for Full Pension.
Obviously rules was different back when your mum officially hit retirement age


Edited by: "bojangles" 18th Jan

cjhilton49

It was also on Radio 4 at least twice today



I missed both of those so glad the OP posted

Pensioners get enough!

The foggies have it too easy financially anyway.
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