Grandparents childcare credit applications surge by 43%, boosting state pensions

Grandparents and other family members are applying in record numbers to a Government scheme that can add thousands to their state pension, data obtained by Quilter has shown. 

Nearly 43,000 applications were made for specified adult childcare credits between October 2023 and September 2024, up 43% on the previous year. 

The figures, released by HMRC under a Freedom of Information request, also revealed that applications have more than doubled in four years.

A total of 131,594 applications have been made over the last five years, with 104,433 approved. 

The scheme allows grandparents and other family members to receive national insurance (NI) credits when looking after a child under 12, as long as the parent is working and already building up their own credits. 

Each year of credit is currently worth £330 on the 2025/26 state pension, potentially adding up to £6,600 over a 20-year retirement.

To qualify, the applicant must be an eligible family member and below state pension age, which is now 66. 

Jon Greer, head of retirement policy at Quilter, said: “Applications for specified adult childcare credits are surging as more families catch on to the fact that looking after grandchildren doesn’t just help with childcare but can also boost your retirement income.