The Department of Work and Pensions (DWP) has announced a window to top up to National Insurance contributions, so people can get a full state pension, has been extended. Anyone who needed to top up their contributions for the period between April 2006 up to April 2017 previously had a deadline of April 5 2023.
But some people had reported being unable to get through to DWP or HMRC phone lines after Martin Lewis warned people to make sure they took advantage of the offer. The government said that this deadline had now been extended until July 31 2023 to allow people more time.
The deadline extension was announced via a Written Ministerial Statement earlier today (March 7) and HM Revenue and Customs (HMRC) is urging taxpayers to ensure they do not miss out. One reason the service has been slammed with calls is most likely due to the public awareness campaign fronted by the Money Saving Expert founder Martin Lewis.
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Over the last year, the consumer rights champion has urged those aged between 45 and 70 to check their national insurance records to see if they could boost their state pension. People need around 35 years of National Insurance contributions to get their full state pension.
Earlier this year he told his ITV show audience: "But many people are missing national insurance years – maybe because you were caring for somebody or caring for a child, or you had years abroad, or you had a low income, or you had a career break.
"Now, this is why it's so urgent. Transitional arrangements were put in place in April 2016, and they end this tax year – that is 5 April. It's about six weeks away, and that's not a long time to do something that's quite complicated.
"Until then, you can plug any gaps back to 2006 in your national insurance years. But after that, you can only go back six tax years to 2017. So there are 11 years that you will lose on 6 April the ability to buy back." The difference could mean being paid tens of thousands more over a period of years.
As part of transitional arrangements to the new State Pension, taxpayers have been able to make voluntary contributions to any incomplete years in their National Insurance record between April 2006 and April 2016, to help increase the amount they receive when they retire. The government said it had been listening to people concerned they would not make the deadline.
Victoria Atkins, The Financial Secretary to the Treasury, said: ”We’ve listened to concerned members of the public and have acted. We recognise how important State Pensions are for retired individuals, which is why we are giving people more time to fill any gaps in their National Insurance record to help bolster their entitlement.”
Any payments made will be at the lower 2022 to 2023 tax year rates. As part of transitional arrangements to the new State Pension, taxpayers have been able to make voluntary contributions to any incomplete years in their National Insurance record between April 2006 and April 2016, to help increase the amount they receive when they retire.
Thousands of taxpayers with incomplete years in their National Insurance record could be financially better off in their retirement if they make voluntary payments to top up any incomplete or missing years. Eligible taxpayers can find out how to check their National Insurance record, obtain a State Pension forecast, decide if making a voluntary National Insurance contribution is worthwhile for them and their pension, and how to make a payment on GOV.UK.
Taxpayers can check their National Insurance record, via the HMRC app or their Personal Tax Account.
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