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Pensions for Parents and Carers

Last updated: July 2026 · 5 min read

Time out of work to raise children or care for someone is the biggest single cause of pension gaps, and it lands mostly on women. The system does provide protection, but almost all of it has to be claimed, and the worst traps look like sensible decisions at the time. Here is what to claim, what to avoid, and how grandparents can help.

The Child Benefit trap

Claiming Child Benefit for a child under 12 automatically gives the claiming parent a free National Insurance qualifying year, protecting the State Pension while they are not earning. The trap: because of the High Income Child Benefit Charge (which claws back the money when the higher earner is on £60,000 to £80,000, source: GOV.UK 2026/27), many families never claim at all. That throws away the NI credits along with the payments.

The fix is simple: claim Child Benefit but tick the box to opt out of the payments. No money changes hands, no tax charge arises, and the stay-at-home parent still gets the qualifying years. If your family skipped claiming in earlier years, a new credit route opened in April 2026 for exactly this situation; check GOV.UK for "National Insurance credits for parents".

One more detail: make sure the Child Benefit claim is in the name of the parent who is not working (or earning least). A working parent gets a qualifying year from their job anyway, so the credit is wasted on them. Credits can be transferred between parents if the claim is in the wrong name.

What one missing year costs

Each qualifying year is worth 1/35th of the full State Pension, about £358 a year for life at 2026/27 rates. Ten years at home without credits would cost roughly £3,585 of pension every single year of retirement. The credits make those years free; our guide to NI gaps covers filling any that slipped through.

Grandparents can claim too

If a grandparent (or other family member) under State Pension age looks after a child under 12 while the parents work, the working parent's spare Child Benefit credit can be transferred to them. These are Specified Adult Childcare credits, claimed on form CA9176 after the tax year ends. School pickups and holiday care count; it does not need to be full-time. For a grandparent short of qualifying years, this is a State Pension boost for doing what they already do.

Carers

Claiming Carer's Allowance comes with Class 1 NI credits automatically.
Caring 20+ hours a week without Carer's Allowance (common when the person cared for does not get a qualifying disability benefit, or the carer earns slightly too much) can still qualify for Carer's Credit. It must be claimed; most eligible carers never do.
Check your record either way on GOV.UK ("check your State Pension forecast") so gaps show up while they are still fixable.

Parental leave and your workplace pension

During paid maternity, paternity or adoption leave, your employer must keep paying their pension contributions based on your normal salary, while your own contributions are based on the pay you actually receive, which is usually less. Result: staying in the scheme during leave is unusually good value. Opting out to save money during leave is understandable and almost always the wrong move; you give up employer money at the exact moment it is cheapest for you.

The part-time trap

Auto-enrolment only kicks in at £10,000 a year per job. A parent working two part-time jobs of £8,000 each gets enrolled in neither, despite earning £16,000. If that is you, you can usually ask to opt in: earn over £6,240 in a job and your employer must contribute if you join. One letter to payroll turns two pension-free jobs into two contributing ones. And a non-earning partner can still have a pension: anyone can contribute up to £3,600 gross a year (£2,880 net) to a pension for a non-earner, with 20% tax relief added on top.

See what the career-break years cost, and fix it

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The checklist

Claim Child Benefit even if opting out of payments; put the claim in the non-earner's name.
Transfer spare credits to a grandparent doing childcare (CA9176).
Claim Carer's Credit if you care 20+ hours a week.
Stay in the workplace pension during parental leave.
Opt in to workplace pensions in part-time jobs under £10,000.
Check both partners' State Pension forecasts on GOV.UK once a year.

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This article is for general information only and does not constitute financial advice. Credit rules and thresholds relate to the 2026/27 tax year and are correct as of July 2026; eligibility depends on individual circumstances, so confirm on GOV.UK before relying on a credit. For advice tailored to you, speak to a financial adviser regulated by the Financial Conduct Authority (FCA), or get free guidance from MoneyHelper.