Grandparents are eligible to get £2,675 in child benefit.
Grandparents have been taught how to apply for an unclaimed benefit by an investing firm.
As reported by Mirror Online, grandparents receive Specified Adult Childcare Credits when parents sign over their National Insurance contributions tied to Child Benefit to senior relatives for the care of grandkids under the age of 12.
According to Hargreaves Lansdown, the pension could be worth up to £53,500 over the course of a 20-year retirement.
According to statistics, just 19,000 persons applied for the benefit in 2018, out of a total of 100,000 people who were eligible.
However, even the 100,000 figure, according to a tax and financial planning expert at investment firm Quilter, is greatly undervalued.
“It’s great to see more grandparents and other family members taking advantage of Specified Adult Childcare Credits,” Shaun Moore said.
“However, the number of people who have benefited from the credits is still insignificant in compared to the estimated number of people who would be helped by the scheme. What’s more concerning is that so many applications are being refused, which may discourage people from applying in the future.”
Quilter obtained information through a Freedom of Information Act request that revealed that one-fifth of welfare applications are denied.
Nearly 78,000 applications for the credits have been submitted in the last five years, but 16,000 have been denied. Every year, about 15,580 persons apply for the benefit, with only 12,385 of them being approved.
The most common reasons for Specified Adult Childcare Credit applications being denied, according to Quilter, are that the applicant is currently working or receives alternative National Insurance credits.
If you’re claiming the full state pension, you won’t be able to apply because your state pension is based on how many NI credits you’ve accrued over your working life.
To qualify for any type of state pension, you must have made NI contributions for at least ten years, and at least 35 years to receive the full amount, which is now £179.60.
It is possible to supplement an older relative’s state pension if they do not receive the entire amount and spend a lot of time caring for grandchildren under the age of 12.
If the grandmother receives Child Benefit, claims are also more likely to be denied. “The summary has come to an end.”