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| Grandparents 'miss out' on National Insurance pension perks | Grandparents 'miss out' on National Insurance pension perks |
| (about 13 hours later) | |
| Tens of thousands of grandparents are missing out on National Insurance (NI) credits which could be worth more than £230 a year when they retire, a former pensions minister has said. | Tens of thousands of grandparents are missing out on National Insurance (NI) credits which could be worth more than £230 a year when they retire, a former pensions minister has said. |
| Sir Steve Webb, director of policy at Royal London, wants the government to encourage more people to claim them. | Sir Steve Webb, director of policy at Royal London, wants the government to encourage more people to claim them. |
| Parents who give up work are given NI credits while their children are under 12, to help them get a state pension. | |
| If they return to work, relatives can claim the credits instead. | If they return to work, relatives can claim the credits instead. |
| To qualify for the so-called grandparents' credit, such relatives need to be of working age, while caring for the child in question. | To qualify for the so-called grandparents' credit, such relatives need to be of working age, while caring for the child in question. |
| In the year to the end of September 2016, only about 1,300 people claimed the credits, according to a response to a Freedom of Information request. | In the year to the end of September 2016, only about 1,300 people claimed the credits, according to a response to a Freedom of Information request. |
| However, Sir Steve said that as many as 100,000 relatives could get them, if only they were made aware. | However, Sir Steve said that as many as 100,000 relatives could get them, if only they were made aware. |
| "The scheme is not much use if hardly anyone takes it up," he said. | "The scheme is not much use if hardly anyone takes it up," he said. |
| "The government needs to act quickly to alert mothers to the fact that they can sign over the National Insurance credits that they do not need." | "The government needs to act quickly to alert mothers to the fact that they can sign over the National Insurance credits that they do not need." |
| Analysis: Simon Gompertz, BBC personal finance correspondent | Analysis: Simon Gompertz, BBC personal finance correspondent |
| Any close relative can apply for the National Insurance credits, but it's most likely to be a grandparent, as long as they're under pension age. | Any close relative can apply for the National Insurance credits, but it's most likely to be a grandparent, as long as they're under pension age. |
| Each year of caring for a child under 12, qualifies them for an extra £231 of annual pension. | Each year of caring for a child under 12, qualifies them for an extra £231 of annual pension. |
| Which is valuable if they don't have a full National insurance record and aren't earning enough to pay National Insurance anyway. | Which is valuable if they don't have a full National insurance record and aren't earning enough to pay National Insurance anyway. |
| If families think they've missed out, they can make backdated claims for all the years back to 2011. | If families think they've missed out, they can make backdated claims for all the years back to 2011. |
| A grandparent or other relative who takes part in the scheme for a full year is able to claim an extra 1/35th of the state pension. | A grandparent or other relative who takes part in the scheme for a full year is able to claim an extra 1/35th of the state pension. |
| That is worth £231 a year, or about £4,600 over a 20-year retirement. | That is worth £231 a year, or about £4,600 over a 20-year retirement. |
| In response, the government said that as many as 5,000 people in total had benefited from the scheme - officially known as Specified Adult Childcare credits - since it started in 2011. | In response, the government said that as many as 5,000 people in total had benefited from the scheme - officially known as Specified Adult Childcare credits - since it started in 2011. |
| "These credits are available to people in a small number of specific circumstances," said a spokesperson for the Department for Work and Pensions (DWP). | "These credits are available to people in a small number of specific circumstances," said a spokesperson for the Department for Work and Pensions (DWP). |
| "As with all credits, details of the Specified Adult Childcare credits are well publicised on GOV.UK and are promoted through a number of consumer websites." | "As with all credits, details of the Specified Adult Childcare credits are well publicised on GOV.UK and are promoted through a number of consumer websites." |
| Those who have missed out on the scheme can make back-dated claims. | Those who have missed out on the scheme can make back-dated claims. |
| The application form can be found on the government's website. | The application form can be found on the government's website. |