Nearly 160,000 boost state pension as childcare credit uptake grows over the decade, adding over £55m a year to retirement incomes

22 June 2026

As summer holidays loom and many grandparents prepare to take on additional childcare responsibilities, new data from Quilter, the wealth manager and financial adviser, shows that over 200,000 applications have been made for Specified Adult Childcare Credits (SACC) over almost a decade, with nearly 160,000 successfully approved, highlighting the growing role these credits are playing in boosting retirement incomes.

A successful claim gives someone an additional year of National Insurance (NI) credit and each extra qualifying year can increase a recipient’s state pension by around £350 per year, meaning a claim could boost retirement income by more than £7,000 over the course of a typical retirement.

With nearly 160,000 successful claims made, this equates to well over £55 million being added to retirement incomes each year, underlining the collective impact of a scheme that has historically been underused.

Specified Adult Childcare Credits provide a valuable opportunity for grandparents or other family members caring for a child under 12 to build up their NI record. Where a parent or primary carer is receiving Child Benefit but does not need the associated NI credit because they are already building a qualifying year, that credit can be transferred to the family member providing childcare, helping fill gaps in their own NI record.

This also highlights the importance of maintaining a Child Benefit claim, as opting out entirely can mean there are no National Insurance credits available to transfer.

SACC applications and outcomes

Sources: Quilter FOI analysis and HMRC data

The data shows a steady upward trajectory in applications over time, alongside a more pronounced increase in recent years. In particular, applications rose sharply to 42,964 in the 2023/24 application year, up from 29,967 the year before, with HMRC noting this followed increased awareness of the scheme due to media coverage.

Despite rising uptake, a consistent proportion of claims continue to be rejected, with around one in five applications unsuccessful in recent years. In 2023/24 alone, more than 9,000 applications were rejected, suggesting that while awareness has improved, there remains some confusion around eligibility and how the credits can be transferred.

Common reasons for rejection include applicants already having a qualifying year of National Insurance, often because they are still working or receiving other credits, or cases where they are already receiving Child Benefit themselves and therefore automatically benefit from the credits.

Eligibility rules remain relatively straightforward. Claimants must be under State Pension age and caring for a child under 12 whose parent claims Child Benefit and agrees to transfer their NI credits. There is no minimum number of hours required for providing childcare, and claims can be backdated to 6 April 2011. Applications for a given tax year can only be made after 31 October of the following tax year.

These credits can be particularly valuable in addressing gaps in National Insurance records that often arise from time spent out of the workforce, which can disproportionately affect women.

Jon Greer, head of retirement policy at Quilter, comments:

“The longer-term trend shows that more families are becoming aware of these credits, but the step-up in recent years underlines how responsive people are once the option is better understood.

“For grandparents who have taken time out of work to support childcare, these credits can make a meaningful difference to retirement income, particularly when compared with the cost of filling gaps through voluntary contributions, which can exceed £900 for a single year.

“For many people, securing the full state pension is a key foundation of later life income, and these credits can offer grandparents a relatively simple way to strengthen their entitlement while helping family with childcare.

“However, the data also highlights that a significant number of applications remain unsuccessful, which points to a need for clearer guidance around eligibility and how the system works in practice.

“With childcare costs continuing to rise, grandparents are playing an increasingly important role in supporting working families. Ensuring they are able to access the pension benefits linked to that support remains an important part of the wider retirement system. As childcare costs continue to rise and families rely more on informal support, ensuring these credits are properly understood and used will only become more important.”