Are you aware of the Grandparent Tax Credit Scheme?
It’s been estimated that over 100 000 grandparents in the UK could benefit from Government ‘specified adult childcare credit[s]’ each year but are currently missing out because many are unaware such a scheme exists…
Many families rely on the help of their parents for childcare, especially during the school holidays. In fact, there are reportedly 1.3 million working mums who rely on support from grandparents, according to the Office for National Statistics.
Nursery and childcare is expensive and we are all too aware of the rising cost of living in general, and so many of us (who are lucky enough to be able to) turn to our faithful parents for help. Research completed by Grandparents Plus and Age UK estimates that the childcare provided by grandparents is worth £7.3 billion pounds a year!
However, what many of us may not realise is that if grandparents have retired early in order to lend a hand, they are potentially missing out on £231 a year from the full rate of the state pension, which over a 25-year retirement equals a loss of £5800.
This information came to light recently, following a Freedom of Information request sent to HMRC by Royal London, a pension company. What’s good is that there is a Government scheme in place to support grandparents who are helping with childcare but very few actually seem to be aware that they are entitled to such benefits – as proven by the fact that a mere 1298 people claimed last year as the recent report shows. As the retirement age rises, schemes like this become all the more important and useful to know about. Grandparents who have retired early to help look after children under the age of 12 are eligible to apply for Class 3 National Insurance credits in order to top up their retirement income. So if you think you may be eligible or know someone who is, head to the gov.uk website to find out more…
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