Government extends deadline for state pension top-ups

The government has confirmed that people will have more time to top up their state pensions.

People can normally fill in gaps in their NI record over the previous six years. However as part of the transitional arrangements to the new State Pension in 2016, people have been able to make voluntary contributions to fill up any gaps in their NI record between April 2006 and April 2016. The deadline for making these additional payments was 5th April 2023, but the Government has extended that deadline to 31st July 2023.

In addition, people will still be able to pay these historic years at current rates for voluntary NICs rather than the increased rate which would otherwise apply from April.

The cost of filling one year’s gap is currently £824.20 and the additional benefit is currently around £275 a year, increasing each year in line with the triple lock.

The government says it has seen a ‘surge’ in interest, with Victoria Atkins, financial secretary to the Treasury, saying: "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."

Former pensions minister Steve Webb, who has been calling for an extension to the deadline, said: “This is great news for people thinking of topping up their state pension. For most people, paying voluntary NI contributions to deal with a shortfall in their state pension makes excellent financial sense. But it is also important to make sure that extra contributions are right in your individual case as sometimes additional contributions may not boost your pension.

"People need time to talk through their options with DWP and then make the correct payment to HMRC and this extension to the deadline should give them time to do this. The Government is to be commended for listening to the calls to extend the deadline.”

Andrew Tully, technical Director at Canada Life, added: "Paying voluntary national insurance contributions to boost your state pension can be a great deal, and you should get your money back after around three years. But care needs to be taken as many people will have sufficient NI to qualify for a full state pension, so have no need to pay more. Even if you have gaps in your record you may be able to fill these for free by making sure you have received credits, for example if you were unemployed, or caring for relatives. You can get a state pension forecast from gov.uk which will show if you are on track, and highlights any gaps in your NI record."