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NI credits towards state pension when looking after grandchildren

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Maggiemaybe Tue 02-Aug-16 11:52:55

www.gov.uk/government/uploads/system/uploads/attachment_data/file/237239/specified-adult-childcare-credits.pdf

On the WASPI (Women Against State Pension Inequality) website, I've just come across a mention of the above.

For women in my position - ie not working, but looking after one of my grandchildren, not entitled to my state pension until I'm 66 - this could prove useful in boosting the pension I'll eventually get (I hope!). I have a 41 year NI record, but many of those years won't be counted towards the new state pension as I was opted out for a significant chunk of them.

If I'm reading this correctly (and I have occasionally been known to be wrong grin), I can be credited with Class 3 contributions (which count towards the state pension and certain bereavement allowances only) for looking after DGS2, even though it's not full-time.

I'm guessing there are other Gransnetters in this position who haven't heard about this, so hope this will be helpful. I've filled the form in now anyway - nothing ventured, nothing gained!

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Grannyben Tue 02-Aug-16 20:49:47

Thank you for sharing this, I'd never heard of it before

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chelseababy Tue 02-Aug-16 21:04:49

If you already have 41 years NI contributions, albeit some contracted out, I don't think you would gain anything as you only need 35 years. I could be wrong too!

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Maggiemaybe Wed 03-Aug-16 13:34:15

I would have thought so too, chelseababy. But under the new system, none of your "contracted out" years count, as you paid slightly less into the state pension during that time. In my case this means that my pension forecast is only around £100 per week. Under the old system, contracted out years counted towards the basic state pension (just not to the state second pension, the SERPS element), so I would have been entitled to the full amount of around £115 per week.

There are transitional arrangements in place that mean I'll get the higher of the two amounts, but I have another four and a half years until I get my pension at 66, so I hope I can still boost it a little.

I'm not convinced that everyone is aware of this change. Many assume they will get the full £150 odd. I got my figures by requesting a pension forecast last year.

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chelseababy Wed 03-Aug-16 14:44:07

The contracted out years do count but not for the full amount. I've always been contracted out but pension forecast is £139. It's so complicated!

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Maggiemaybe Wed 03-Aug-16 14:52:53

Wow, that's a massive difference. I was contracted out only for around half of my 41 contributing years. I think I'd better query my forecast of £100. shock

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GrandmaEngland Tue 09-Aug-16 22:20:35

This was started in 2011 I think. I'm very clued up on pensions and finance and I only found out purely by accident this year. When I rang the DWP to ask about this, the person answering the phone didn't know anything about it! I'm planning on claiming it as I'll be looking after my grandson three days a week whilst my daughter works. It's a very good thing but it's not widely known about.

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