DWP warning ahead of huge state pension change which could see your payments cut
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The Department for Work and Pensions (DWP) and HMRC have issued a warning ahead of a major state pension deadline next year. The deadline to fill in the gaps in your National Insurance record is April 5 next year, and both the DWP and HMRC are preparing for a tidal wave of demand for their services in the lead-up. Under the current rules, you need 35 qualifying years on your National Insurance record - some people may need more - to claim the full new state pension. You normally need 10 years to receive anything at all.
If your record has gaps, you could receive much less than you expected, but you can make voluntary contributions to fill them. The original deadline was April 5, 2023, but this was extended once until July 2023 and then until April 2025 after a public awareness campaign, spearheaded by MoneySavingExpert.com founder Martin Lewis, jammed phone lines to the Future Pension Centre.
Right now, you can buy back missing National Insurance years dating back to 2006, but after the deadline, you will only be able to go back six tax years. So if you miss the deadline, you could see your state pension payments cut. With just a few months left until this happens, HMRC and the DWP are preparing for heavy usage of their services, according to exchequer secretary to the Treasury, James Murray.
Earlier this month, Liberal Democrat MP Freddie van Mierlo Portrait asked the Treasury what steps they were taking to reduce delays in topping up National Insurance records and the "complexities in obtaining the necessary information to purchase additional years of National Insurance contributions.".
