Grandparent carers get pension help in Budget

Grandparents will receive the credits from 2011, but only if they care for a child aged under 12 for more than 20 hours a week. Those who reach state pension age on or after 6 April 2010 need to have paid National Insurance contributions over 30 years in order to qualify for a basic state retirement pension.
Currently, only stay-at-home mothers receive help to top up their missing National Insurance contributions.
Sam Smethers, chief executive of Grandparents Plus, said, 'We warmly welcome the introduction of the grandparent NI credit. One in three working families rely on grandparental childcare.  We know that working-age grandmothers on low incomes are the ones who are most likely to be providing that childcare.  Until now, they have done so with the risk that they could miss out on a full basic state pension.'
She added, 'But this is also an important victory for the principle that the care that grandparents provide does count and should be recognised.  We believe this has implications for other areas of Government policy.'
The Chancellor also reiterated the Government's commitment to support all households through the economic downturn, with plans to increase Child Tax Credits by an additional £20 a year above indexation from April 2010, and to amend the law to allow parents to claim Working Tax Credit a month after they start part-time work to help pay for childcare. Currently, parents who start part-time work lose their Working Tax Credit entitlement and only receive a WTC run-on period if they lose their job.
Mr Darling also announced plans to contribute £100 every year to disabled children's Child Trust Funds, with severely disabled children receiving £200 per year to help contribute to their higher financial needs as they enter adulthood.

Responses from the early years and childcare sector

National Day Nurseries Association
Chief executive Purnima Tanuku said, 'While NDNA believes in the importance of parental choice, it is vital that grandparents are not seen as a replacement for formal childcare. Grandparents do play a valuable role in family life, but it is crucial that the benefits of formalised early learning and care are not forgotten.
'Although grandparents will not be paid as such, to top up pensions means it is vital to consider how such a system can work in practice for the benefit of children. For example, it is important that no grandparent feels pressured to care for grandchildren, and we need to look at how to support these individuals to ensure that children are receiving the best possible care. This could include looking at how families can continue to access the benefits of nursery, such as through parents and grandparents building links with nursery so that they can balance family life with giving their child access to the benefits of formal early care and education.'

4Children
Chief executive Anne Longfield said, 'Certain measures within this Budget will go some way towards helping families, but far more needs to be done to support the most disadvantaged families who suffer most during tough economic times. We want the Chancellor to prioritise help for vulnerable families and would have preferred a £20 per month rather than per-year increase in the child element of the Child Tax Credit.'

Pre-school Learning Alliance
Chief executive Steve Alexander said, 'The move into encouraging people back into work has a number of elements to it affecting the childcare offer which give some cause for concern. There is increasing evidence that parents are finding it more difficult to afford childcare as the credit crunch begins to bite. Potentially, a number of parents might be choosing informal childcare over the full daycare offer provided by nursery operators. With UK childcare costs being among the highest in Europe, much of the impact of this reduction in demand is likely to fall on already hard-pressed providers. Sustainability remains the number one concern, and the credit crunch exacerbates viability as parents struggle to meet costs.'

Daycare Trust
Chief executive Alison Garnham said, 'Extending the four-week Working Tax Credit "run-on" period, for couples who would lose their WTC entitlement due to part-time working, is welcome. But if the Chancellor had also extended the run-on period to 12 weeks, then fewer parents would lose their childcare place when they are forced to look for a new job.'

Every Disabled Child Matters campaign board member and chief executive of Contact a Family, Srabani Sen, said, 'EDCM welcomes the measures announced in the Budget to tackle poverty for disabled children by increasing Child Trust Funds. We are delighted at this significant investment in the future for disabled children.'