Currently, individuals need 35 years of NI contributions to qualify for the full state pension, worth £230.25 per week. But by using these childcare credits, parents and relatives who look after children under 12 can add to their pension. Each year of credited childcare can increase your pension by around £330, meaning over a 20-year retirement, you could potentially add close to £6,600 to your pension pot.

The boost isn’t limited to short school breaks like February half-term – the childcare must be carried out over a longer period to count. However, claims can be backdated to 2011, when these credits were first introduced.

The credits aren’t restricted to grandparents. Any eligible family member responsible for a child whose parent receives child benefit can apply. But there are some limits: only one credit can be transferred per child benefit claim, regardless of how many children are being cared for.

Applicants must also be under state pension age, and the child must be under 12, or up to 17 if they have disabilities. Applications for the current tax year can only be submitted after October 31, as HMRC needs to verify that the parent or main carer has a qualifying year of National Insurance contributions.

Before applying, applicants should check the parent’s NI record on the gov.uk website to confirm credits are available.

The application requires details about the child, the periods of care, and contact information for the parent receiving child benefit. Both the carer and the parent must sign a declaration, and the form CA9176 must be completed online to submit the claim.