State pensioners can receive an additional £7,100 in their state pension from the Department for Work and Pensions (DWP) by completing HMRC form CA9176. The form allows eligible grandparents to claim Class 3 National Insurance credits for providing care for a child under 12 years old, dating back to 6 April 2011.
How the Credits Work
The Class 3 National Insurance credits were introduced on 6 April 2011. Grandparents can apply for these credits if they are an eligible family member who provided care for a child aged under 12, and the child's parent or main carer does not need the credits themselves. The credits transfer the weekly National Insurance credit that a parent or carer receives as the Child Benefit recipient to the eligible family member, helping to fill gaps in the National Insurance record.
A personal finance expert told Birmingham Live: "This is one of those HMRC checks that can look small on paper but matter years later. If a grandparent gave up work, reduced hours or simply was not building a full National Insurance year while helping with childcare, the family should check whether those credits can be transferred."
Claiming Process and Limitations
Only one credit is available per Child Benefit claim, regardless of how many children are covered by that claim. For instance, if two grandparents cared for their daughter’s two children, only one credit can be transferred, and the Child Benefit recipient must decide who receives it. However, if the grandparents cared for children from two different families (e.g., their daughter’s child and their son’s child), two credits are likely available for transfer.
The expert added: "The crucial point is that the parent must not need the credit themselves. Families should check both National Insurance records before applying, because the right answer is not always obvious. Do it before pension age where possible, because sorting missing years is much easier when there is still time to fix the record."
Value of the Credits
Each week or part week of care provided entitles the grandparent to a Class 3 National Insurance credit. Experts estimate that these credits could be worth up to £7,100 in additional state pension. However, if no one has claimed Child Benefit for the child, there is no attached National Insurance credit to transfer, meaning credits cannot be awarded.
