HMRC has announced a “major extension” to the deadline for paying voluntary NI beyond the standard six years, to top up one’s state pension entitlement.
People can currently top up their contributions as far back as the 2006/2007 tax year, rather than over the standard period, which is up to six years ago.
This period was set to end at the end of July this year but ministers have now extended the deadline to April 5, 2025.
Britons topping up their contributions had previously had issues contacting the DWP as the department experienced a huge number of calls from people keen to max out their contributions with the deadline looming.
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The DWP hopes the extension will mean the load of calls can be spread out with staff given more time to cope with the high level of interest.
Former pensions minister and LCP partner, Steve Webb, said: “I am delighted that the Government has announced a major extension to the deadline for paying voluntary NI to top up state pensions.
“This is a complex area with great potential for people to improve their position but also the risk that they may get things wrong.
“It is essential that people can talk through their options with the DWP before making any payments, and this has simply been impossible for too many people because of lack of phone capacity.
“This significant extension should give time to train up enough people to handle the volume of calls that are now being made and enable everyone to take advantage of this opportunity if it is right for them.”
The original deadline for people to top up their contributions over the extended period was April 5, 2023, meaning people will have another two years to max out their contributions.
A person can significantly increase their state pension payments over the course of their retirement with a relatively small top up of their contributions.
One woman shared her story on an episode of Martin Lewis’ ITV show, about how she is on course to get an extra £11,500 in payments, after topping up just under £1,000.
A person typically needs 30 years of NI contributions to get the full basic state pension, which is currently £156.20 a week.
To get the full new state pension, which is £203.85 a week, a person will typically need 35 years of NI contributions.
Alice Haine, personal finance analyst at Bestinvest, encouraged people to check if they can benefit from topping up their NI contributions.
She said: “The deadline extension will not only give the Government time to catch up on the volume of enquiries, but also allow more taxpayers to find out if they would benefit from making up any missing years.
“The extra time will also give those that will gain from making up a shortfall the chance to build up funds to cover the cost, which can run into the thousands depending on how many missing years they have on their record.”
She said the offer could be particularly helpful for those with a large gap in their record, such as women who took time out of work to raise a family, as well as people on a low income or Britons living and working abroad.
The expert said: “An extra two years should be enough time for those concerned about gaps to first check their National Insurance record is up to date and then take the necessary steps to plug any shortfall.”
A person can check how much state pension they are on track to receive, and if they can pay contributions to increase their payments, using the state pension forecast tool on the Government website.
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