Pension Credit and NI Credits for Grandparents Raising Grandchildren

Grandparents who have reached State Pension age and are raising a grandchild claim Pension Credit rather than Universal Credit. The rules are more generous in some ways — no upper capital limit, for instance — but the system is less well-known, and many pension-age kinship carers miss out on child additions they are entitled to.

Separately, grandparents under State Pension age who leave work to care for a grandchild risk losing qualifying years toward their own pension. There is a fix for that, but it requires a specific form that most families never hear about.

Pension Credit Child Additions

If you have reached State Pension age and are responsible for a child, Pension Credit adds a child amount to your weekly guarantee:

• Child born before 6 April 2017: £81.07 per week
• All other children: £69.98 per week
• Disabled child addition (lower): £37.93 per week
• Disabled child addition (higher): £118.46 per week

These are on top of the Pension Credit Guarantee minimum of £238.00 per week for a single pensioner or £363.25 for a couple (2026/27 rates).

The capital rules are also significantly better than Universal Credit. Pension Credit fully disregards the first £10,000 in savings, and there is no upper capital limit — unlike UC, which cuts you off entirely above £16,000. For grandparents who have some retirement savings, this matters.

You still claim Child Benefit from HMRC alongside Pension Credit. Guardian's Allowance (£22.95 per week) is also fully disregarded if both parents have died or the surviving parent meets the exception criteria.

Mixed-Age Couples

If you are over State Pension age but your partner is under it, DWP requires the household to claim Universal Credit — not Pension Credit — until both partners reach State Pension age. This is a significant financial disadvantage for kinship carers, because UC has the £16,000 capital cutoff and a lower standard allowance rate.

Protecting Your State Pension: NI Credits

Claiming Child Benefit for a child under 12 automatically awards the claimant Class 3 National Insurance credits toward their State Pension. This is straightforward if you are the grandparent claiming Child Benefit.

But there is a less obvious route that protects grandparents who provide regular childcare for a grandchild while a working parent claims the Child Benefit.

Specified Adult Childcare Credits (Form CA9176)

If you are under State Pension age, not working (or not earning enough for NI credits through employment), and you regularly care for a grandchild under 12, you can receive NI credits transferred from the parent who claims Child Benefit.

The parent or main carer must:

1. Be the Child Benefit claimant for the child
2. Have a qualifying National Insurance year through another route, so they do not need the credits themselves

You apply using Form CA9176 — Specified Adult Childcare Credit application. The parent signs the form to confirm they are giving up their NI credit for that tax year in favour of you.

Each credit covers one qualifying year on your State Pension record. Over several years of caring, this can mean the difference between a full State Pension and a reduced one.

The form is available on GOV.UK. You must wait until 31 October after the end of the relevant tax year before applying for credits for that year.

What to Claim First

If you are over State Pension age and raising a grandchild:

1. Transfer or claim Child Benefit (£27.05/week for the first child)
2. Report the child to Pension Credit (child additions of £69.98–£81.07/week)
3. Apply for Guardian's Allowance if both parents have died (£22.95/week)
4. Request an SGO or CAO allowance assessment from your council if you hold an order

Our kinship financial help guide includes a worked scenario for a pension-age grandparent showing how Pension Credit, Child Benefit, SGO allowance and Guardian's Allowance stack — and the exact calculation the council uses when means-testing your allowance against pension income.

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