Grandparents Helping With Childcare: Specified Adult Childcare Credits Explained (UK)

Grandparents, aunts, uncles and older siblings are often the backbone of a family’s childcare in the first years. What many do not realise is that when a parent claims Child Benefit, there is a National Insurance credit attached to that claim that can be passed on to a family member who provides the care. This guide summarises what HMRC and GOV.UK say about these Specified Adult Childcare credits, who can apply and how the process works. It follows HMRC’s guidance, which requires the applicant to be ordinarily resident in the UK, and is general information rather than advice on any individual National Insurance record. It builds on our guide to claiming Child Benefit.

What the credits are

HMRC’s guidance says Class 3 National Insurance credits for family carers were introduced on 6 April 2011 and can be claimed from that date. A person may be entitled to them 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 work by transferring the weekly National Insurance credit that a parent or carer gets, as the Child Benefit recipient, to an eligible family member, and they can help stop gaps in that person’s National Insurance record. The family member gets one Class 3 credit for each week or part week in which they provided care (HMRC, “Apply for Specified Adult Childcare credits”).

Why Child Benefit is the starting point

GOV.UK’s National Insurance credits page says a parent or guardian registered for Child Benefit for a child under 12 gets Class 3 credits automatically, even if they do not receive the payment. It also points grandparents and other family members caring for a child to the Specified Adult Childcare route, which requires the child’s parent or guardian to get Child Benefit and agree to transfer the credits (GOV.UK, “National Insurance credits: Eligibility”). HMRC adds that if no one has claimed Child Benefit for the child, there is no credit attached to transfer, so credits cannot be awarded.

One credit per Child Benefit claim

HMRC says only one credit is available for each Child Benefit claim, however many children are on it. Its example is a pair of grandparents who care for their daughter’s two children: there is only one credit to transfer, and the Child Benefit recipient must decide who receives it. If grandparents care for a daughter’s child and a son’s child, there are likely to be two Child Benefit recipients and therefore two credits available.

Who counts as an eligible family member

HMRC lists the following as eligible:

• a mother or father who does not live with the child;
• a grandparent, great-grandparent or great-great-grandparent;
• an aunt or uncle;
• a brother or sister, including a half, step or adopted brother or sister; and
• the current or previous spouse, partner or civil partner of anyone on the list, and the son or daughter of such a spouse, partner or civil partner.

The applicant must also have been aged 16 or over but under State Pension age when providing the care, be ordinarily resident in the UK, but not the Channel Islands or the Isle of Man, and have the agreement of the parent or main carer, who must countersign the form. HMRC says not to apply for the same period if the applicant already has a qualifying year for National Insurance, usually through work or other credits, or is receiving Child Benefit and already gets credits automatically. A spouse or partner living with the Child Benefit recipient who wants the credits transferred uses a different form, CF411A.

When and how to apply

HMRC says applicants must wait until 31 October after the end of the tax year they want to apply for, because HMRC needs to check that the parent or main carer already has a qualifying year. Before applying, the parent or main carer should check their National Insurance record online to make sure they have credits to transfer. The application needs the family member’s details, the child’s details and the periods of care, and the parent’s details as the Child Benefit recipient. Both must sign a declaration on form CA9176, which is completed online, printed and posted to HMRC. The form cannot be saved part-way, so it helps to gather the information first (HMRC, “Apply for Specified Adult Childcare credits”).

A short checklist for families

• Confirm that the parent is registered for Child Benefit; without a claim there is no credit to transfer.
• Agree between the parents and grandparents which relative should receive the single credit.
• Keep a note of the weeks of care provided, since the form asks for the periods.
• Check the grandparent’s own National Insurance record first, because those who already have a qualifying year should not apply.
• Diarise the date: applications for a tax year wait until 31 October afterwards.

Questions readers often ask

How many credits does a family member get?

HMRC says a family member gets one Class 3 credit for each week or part week in which they provided care for the child.

Can two grandparents both get the credit?

Not for the same Child Benefit claim, because only one credit is available per claim. The recipient decides who has it.

What if the parent does not claim Child Benefit?

HMRC says there is then no credit attached to transfer, so credits cannot be awarded.

The bottom line

Specified Adult Childcare credits let a parent who gets Child Benefit pass one weekly Class 3 National Insurance credit to a family member, such as a grandparent, who cares for a child under 12. Only one credit exists per Child Benefit claim, the family member must be under State Pension age and not otherwise need the credit, and the parent must agree. Applications on form CA9176 wait until 31 October after the tax year has ended.

Sources

• HMRC, “Apply for Specified Adult Childcare credits”
• GOV.UK, “National Insurance credits: Eligibility”