Seven in 10 grandparents who regularly look after their grandchildren report that the cost of doing so has become more expensive over the past year, according to new research from Creditspring. The financial strain is forcing many to dip into their savings to cover the expenses associated with caring for their grandchildren.
Average Daily Costs
On average, grandparents estimate that a full day of looking after a grandchild costs them £19.51. A third of respondents (33%) said they spend £20 or more per day. One grandmother commented: "I'm still working around 30 hours a week, but alongside that I'm providing up to 30 hours of childcare as well, so there's very little room to make up that lost income. It puts a real strain on your finances, especially when you're getting older and should be thinking about slowing down, not stretching yourself further."
Financial Support Options
Tamsin Powell, consumer finance expert at Creditspring, noted: "Grandparents are a lifeline for many families, often stepping in to provide childcare that helps parents work, save money and manage busy lives." For those under state pension age who care for grandchildren, Specified Adult Childcare Credits may be available. These National Insurance Credits can help fill gaps in a grandparent's National Insurance record.
Previous research from Quilter indicates that each year of transferred credit is currently worth £330 in additional state pension income for 2025/26, potentially adding nearly £6,600 over a 20-year retirement. To qualify, the grandparent must have been under state pension age (currently 66) while caring for the child, and the child must be under 12 (or 17 if disabled). There is no minimum number of hours required, meaning even one day per week may qualify. Claims can also be backdated to 2011.
