Pension Credit for Kinship Carers in Scotland

Why Pension Credit Matters for Grandparent Kinship Carers

Grandparents are the largest group of kinship carers in Scotland, and many are on fixed retirement incomes when a child arrives. If you're over State Pension age and receiving Pension Credit — or think you might qualify — adding a kinship child to your claim can unlock a significant weekly increase that most pension-age carers don't know about.

Pension Credit is a means-tested top-up administered by the DWP for people over State Pension age. It has two parts: Guarantee Credit (which tops your income up to a minimum level) and Savings Credit (a smaller addition for people who saved for retirement). When you take on responsibility for a child, Pension Credit includes a child addition that increases your weekly entitlement.

How the Child Addition Works

When you report a kinship child to the Pension Service, your applicable amount (the target income Pension Credit tops you up to) increases by £72.35 per week per child in 2026–27. If the child is disabled and receives Child Disability Payment, the addition is higher.

This is separate from Child Benefit and the Scottish Child Payment, which are paid by different agencies. Get a benefit calculation to understand how your full income will be treated.

Here's how the numbers work for a typical pensioner grandparent with a Section 11 Kinship Care Order caring for an 8-year-old:

The council kinship allowance in this example is net — the council deducted Child Benefit (£27.05) from the gross SRA rate of £206.71, but it does not deduct the Pension Credit child addition or the Scottish Child Payment.

Pension Credit Qualifies You for Scottish Payments

Receiving Pension Credit isn't just valuable in its own right. It's also a qualifying benefit for the Scottish Child Payment (£28.20 per week per child under 16) and Best Start Grants. Without Pension Credit or Universal Credit, you can't access these devolved payments.

Pension Credit is means-tested, so State Pension income alone does not determine whether you qualify. Ask Citizens Advice or CPAG for a free benefit calculation before changing an existing claim.

Mixed-Age Couples: A Critical Complication

If you have a partner and one of you is over State Pension age while the other is under, the DWP generally requires you to claim Universal Credit rather than Pension Credit. The UC child element is £303.94 per month (£70.14 per week equivalent) in 2026–27, compared with the Pension Credit child addition of £72.35 per week. The overall effect depends on your circumstances.

If you're in a mixed-age situation, get a benefit calculation from Citizens Advice Scotland or CPAG before making any changes to your existing claims.

Tax Credits: The Legacy System

A kinship carer who still has an active legacy tax credit award may receive Child Tax Credit rather than Universal Credit. If so, ask HMRC how to report a child joining your household.

Where a legacy Child Tax Credit award remains active, its child element is one of the benefits local councils may deduct from the gross kinship allowance when calculating the net SRA payment.

If you receive a migration notice moving you from tax credits to Universal Credit, follow the notice instructions and get advice on how the transition affects your award. The KCASS helpline (08000 28 22 33) can help you navigate the transition.

Protecting Your State Pension While Caring

Claiming Child Benefit for a kinship child can provide Class 3 National Insurance credits to protect your own State Pension record. This is particularly relevant for non-working kinship carers or younger grandparents who take time off work to provide care.

Our Scotland Kinship Financial Help Guide includes a worked example specifically for pensioner grandparents, showing every payment source, which agency to contact first, and how to avoid the deduction errors that cost carers money during the transition.

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