Grandparents and other family members in the UK who provide care for children can claim annual credits that boost their state pension. These credits are awarded to individuals who take on caring responsibilities for children whose parents are in paid employment. Between 2016 and 2025, approximately 160,000 successful claims for these annual credits were made by grandparents or other family members. Each successful claim can result in an annual pension boost of £359.
The scheme, often referred to as "caring credits," is designed to ensure that individuals do not lose out on state pension contributions due to time spent caring for family members. The eligibility criteria stipulate that the parents of the child must be working, either full-time or part-time, for the caregiver to qualify for the credits. This measure aims to recognize the significant contribution that family caregivers make to society by enabling parents to maintain their careers. The system ensures that a portion of the state pension is safeguarded for those who dedicate time to raising the next generation, even if it is not their own children. This initiative reflects a recognition of the economic and social value of informal childcare arrangements within families.