Grandparents are saving parents an average of £13,500 a year helping with childcare but many may be unaware of a potential financial boost available to them through ‘valuable credits’.
Those who care for their grandchildren may be able to claim a state pension boost around £6,000 if they are getting Specified Adult Childcare Credits (SACCs).
As more families rely on grandparents for support, it’s crucial for those providing care to understand and take advantage of this opportunity.
The rising cost of nurseries and after-school clubs has left many parents struggling to afford childcare, making the role of grandparents increasingly vital in supporting working families across the UK.
Pamela Williamson, a 75-year-old grandmother from Kent, exemplifies this trend and explained her situation to GB News. She looks after her three grandchildren: Poppy, 12, Mason, 9, and Prunella, 4. Williamson handles the morning school run for the younger children and often has Prunella stay overnight due to her stepson’s NHS shift work and his partner’s nursing studies.
She estimates spending £60 to £80 monthly on her grandchildren for snacks, dinners, and occasional treats. Pamela also adds items to her weekly shop for when Prunella’s stays, such as cucumbers and rice puddings.
Grandparents are helping their family make great savings
GETTY
Williamson told GB News: “It’s not an issue to spend on my grandchildren – I only buy it if I can afford it – things like clothes and money. We do a lot more than other grandparents but if you can help our children out you should do it which is how I feel.”
She emphasised that while she’s happy to help, she wouldn’t dip into her savings for these expenses. She does what she can afford.
Grandparents are urged to consider SACCs following recent research by SunLife, which revealed that 59 per cent of grandparents provide regular childcare for their grandchildren, dedicating an average of 18 hours per week to this unpaid service.
SunLife estimated that if the grandparents were paid for their labour, they would get a salary of close to £11,000 a year, so combined, it equates to a saving of around £13,500
As childcare becomes increasingly expensive and grandparents want to help, they are reminded they can get a boost for retirement.
SACCs offer a valuable opportunity for grandparents and other family members caring for children under 12 to boost their state pension.
These credits can fill gaps in National Insurance records for those below state pension age, currently 66. The scheme allows the transfer of NI credits from a parent or carer receiving Child Benefit to an eligible family member.
Successful applicants could see their state pension increase by £328 annually, potentially adding over £6,000 over a typical retirement. Claims can be backdated to April 6, 2011, but can only be submitted after October 31 of the following tax year.
The child’s parent must have claimed Child Benefit but not need the credits themselves. Eligible family members include grandparents, great-grandparents, aunts, uncles, and siblings.
Although Williamson didn’t need SACCs, she understood the value for other grandparents.
She said: “I didn’t actually collect any childcare credits because I worked until I was 69 so it wasn’t an issue for me. I had full contributions on my national insurance record to get the full state pension.
“But it is a valuable tool which can help others, so it is worth looking into.”
People typically need at least 10 qualifying years of national insurance contributions to receive any state pension at all and at least 35 years to receive the full new state pension.
If someone doesn’t have 30 qualifying years on their National Insurance record, they can make voluntary contributions to plug the gaps.
People should check their state pension forecast online to see what kind of a difference voluntary contributions will make and can also contact the Future Pension Centre for guidance.
The rising cost of childcare has led to an increased reliance on grandparents. The financial impact is significant, with the average cost of sending a child under two to nursery reaching £7,210 part-time or £14,030 full-time per year. Families using after-school clubs five days a week spend an additional £67.42 weekly.
Williamson believes grandparents should help if able, noting the high cost of childcare for parents on minimum wage.
She explained that she understood how caring for grandchildren comes at a high cost but she would only do what she can afford, adding: “I wouldn’t take money out of my savings because I can’t put that back, especially at my age.”