New National Insurance credit for Grandparents
The government has announced it will consult on changes to the National Insurance credit system. The proposed changes include a specific credit applicable to grandparents.
The consultation comments that it is a common perception that people become grandparents whilst in retirement and are therefore able to look after their grandchildren. However on average people are becoming grandparents at the much younger age of 49 and many leave work to assist with looking after their grandchild.
The Minister for Pensions, Steve Webb said:
"I have supported the idea of a Grandparents' Credit for many years. For too long the vital child-care that grandparents provide so that parents can work has been overlooked by the system.
"It is about time that we protect the pension rights of grandparents, many who are in their early 50s and giving up work early to provide vital child-care.
"Parents of children under 12 and carers receive a credit towards their basic State Pension so it makes sense to extend this to grandparents of working age too."
To view the list of currently available National Insurance credits click here
Since April 2010, people need to attain 30 qualifying years to receive the full basic state pension.
To view the Department for Work and Pensions press release click here