Tens of thousands of grandparents that are looking after their grandchildren are yet to claim the National Insurance credit that is available to them to build a full state pension, Royal London has said.

While data, from a Freedom of Information request by Royal London, has found that there has been a seven-fold increase in the number of grandparents claiming additional credit towards their state pension as a result of their childcare duties, a number of people in a similar position are yet to claim this help.

Last year, HMRC figures obtained by Royal London revealed that only 1298 grandparents, or other family members, had claimed NI credit in the year from October 2015 to September 2016. Nonetheless, since then, the publicising of poor take-up has led to an increase in interest.

Royal London’s most recent FOI revealed that there were 9486 for NI credit in the year to September 2017; however, it is estimated that this only accounts for around one in 10 of those who are potentially entitled to this assistance.

The rules for the little-known Specified Adult Childcare Credit stipulate that if a mother goes back to work after giving birth she can sign a form that allows a grandparent, or other family member, to receive National Insurance credits for their childcare. A grandparent who quits work to look after their grandchild would otherwise miss out on state pension rights.

For a working-age grandparent, missing one year of state pension rights because they are looking after a grandchild would cost them £230 per year, 1/35th of the full rate state pension. Over a 20-year period this would exceed a £4,500 loss.

Royal London director of policy Steve Webb said: “It is right and proper that when grandparents sacrifice their own working life to help a family member get back to work, they should not also damage their own state pension prospects.

“This National Insurance credit is a valuable right and it is good news that the numbers claiming have risen so dramatically in such a short space of time. But we believe that there are tens of thousands more grandparents who could be entitled to benefit and would encourage more of them to find out about the scheme and to make a claim”.

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