Many families have grandparents taking care of grandchildren while parents work. And during the cost of living crisis, it's likely that many people you know are feeling the pinch in their pockets.
Which is why Martin Lewis is such a hero. The money-saving expert has stepped in to alert people with children being looked after by grandparents of an important benefit they could be missing out on.
He took to Twitter on Monday (October 10) to say: "Pls share. There's a little-known benefit for grandparents who look after their grandchildren while parents work.
"If ur a parent of an under 12, if your parent (ie childs grandparent) do childcare so you can work, u can apply to get em 'Specified Adult Childcare Credit'."
In another tweet he added: "This means they get the National Insurance years that normally go to a parent who is off work looking after children (as you're working you'll usually be getting from work). This can add £1,000s to a state pension."
He included a link to the Government site explaining everything you need to know.
What are specified Adult Childcare credits?
"You may be entitled to receive these NI credits if you are a grandparent, or other family member, who cares for a child under 12, usually whilst their parent (or main carer) is working.
"Specified Adult Childcare credits work by transferring the NI credit attached to Child Benefit from the Child Benefit recipient to a family member who is providing care for a related child under 12. Therefore, if no one has claimed Child Benefit for the child there is no attached NI credit to transfer and Specified Adult Care credits cannot be awarded."
Who is the credit available for?
"As Specified Adult Childcare credits work by transferring the NI credit attached to Child Benefit from the Child Benefit recipient to a specified adult, there is not a credit available for each child under 12 cared for, there is a credit for each Child Benefit recipient. For example, if 2 grandparents are caring for their daughter’s 2 children, there is only one credit available for transfer and the Child Benefit recipient must decide who should have the credit.
"However, if the grandparents are caring for their daughter’s child and their son’s child, there are likely to be 2 Child Benefit recipients and therefore 2 credits available for transfer.
How much could I get?
"Specified Adult Childcare credits will help build up your National Insurance contributions. This means:
- you will receive a Class 3 NI credit for each week or part week you cared for the child (Class 3 NI credits help to build entitlement to the State Pension and, until April 2017, certain bereavement benefits)
- it can help to stop gaps in your National Insurance record"
How can I apply?
"To apply for Specified Adult Childcare credits you will need to complete an application form. The application requires the:
- personal details of the applicant – the family member caring for the child
- child’s details and the periods of care
- personal details of the child’s parent (or main carer) – the Child Benefit recipient
- applicant and the parent must both sign their declarations on the application"
