Childcare may help fill pension gaps
Grandparents helping with childcare during the summer holidays may be able to improve their state pension entitlement through specified adult childcare credits, known as SACCs.
The credits are designed to help people build their national insurance record when they care for a child under 12.
Why SACCs matter
To receive the full state pension, a person generally needs 35 years of national insurance credits.
Gaps often appear when someone has spent time away from paid work, including as a stay-at-home parent, unpaid carer, low earner, self-employed person who did not pay voluntary Class 2 contributions, long-term sick person, unemployed person or expat.
These gaps can disproportionately affect women, making the credits especially important for retirement income.
How the credits work
SACCs allow the weekly national insurance credit received by a parent or main carer through child benefit to be transferred to an eligible family member.
The family member must have provided care for a child under 12, and the parent or main carer must not need the national insurance credit themselves.
Applications since 2016
HMRC data obtained through a freedom of information request by wealth management firm Quilter showed that 202,037 applications for SACCs were made between 2016 and 2025.
Of those, 159,116 were approved, equal to 79% of applications.
The figures show the role the scheme can play in supporting pension records and future retirement income.
Claims rose after greater awareness
Applications increased from 29,967 in 2022-23 to 42,964 in 2023-24.
They then fell to 24,841 in 2024-25.
HMRC said the sharp rise followed media coverage that helped raise awareness of the scheme.
Child benefit claims remain important
Quilter said the numbers underline why families may want to maintain a child benefit claim rather than opting out entirely.
If there is no child benefit claim, there may be no national insurance credits available to transfer to a grandparent or other eligible family member.
Why some applications fail
HMRC figures show that around one in five applications is rejected each year.
In 2023-24 alone, more than 9,000 applications were unsuccessful, suggesting that some confusion remains over eligibility and the transfer process.
Common reasons for rejection include applicants already having a qualifying national insurance year, often because they are still working or receiving other credits.
Claims may also fail if the applicant is already receiving child benefit and therefore already benefits automatically from the related credits.
Who can qualify
Applicants must be under state pension age and must have cared for a child under 12.
The child’s parent or main carer must claim child benefit and agree to transfer the national insurance credits.
There is no minimum number of childcare hours required.
Backdating and paperwork
Claims can be backdated to 6 April 2011.
Applications for a specific tax year can only be submitted after 31 October of the following tax year.
Applicants need to provide the dates when they cared for the child, so keeping a record is useful. The child’s parent or legal guardian must also sign the application form.
