Workers who have a gap in their National Insurance record between 2006 and 2018 have had a crucial deadline top up their state pension extended. Up to 30 million Brits were working in 2006 and many could be eligble for the top up. This deadline has already been extended several times due to demand and the BBC has reported the Department for Work and Pensions (DWP) has said anyone who requests a call back in relation to a voluntary NI contribution will still be able to take advantage of the rules, even if the call back comes after 5 April 2025.
The move should help prevent a repeat of the chaos that ensued when the previous government attempted to enforce the deadline, when people found themselves unable to get through HMRC and the Department for Work and Pensions (DWP) Normally Brits can only backdate their National Insurance record by six years, but when the ‘new’ State Pension was introduced in 2016, the government announced savers could plug gaps all the way back to 2006.
Tom Selby, Director of Public Policy at AJ Bell, said: “There’s nothing like an impending deadline to sharpen the mind, and with just over a month until the closing of special rules allowing people to plug gaps in their National Insurance record going all the way back to 2006, the government is clearly bracing for a surge in demand.
The decision to soften the deadline for those who try to contact the DWP in the next few weeks and request a call back suggests lessons have been learned from the previous government’s botched attempt to close this window.
“Provided a request for a call back has been made by the 5 April deadline, the government says any request to fill gaps going back to 2006 processed after this date as a result of a call back will be honoured. This pragmatic approach should help ensure anyone who wants to take advantage of the time-limited transitional measures has the opportunity to do so.
Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive, said: “Don’t delay – it is quick and easy to check your National Insurance record on GOV.UK and it could help your finances in retirement.”
HMRC said people wanting to maximise their state pension by plugging gaps in their National Insurance record have contributed to a total of 68,673 years, worth £35 million, since April last year.
The current full State Pension is £221.20 a week. However, to get that full amount, you will need to have 35 qualifying years of NI contributions.
Workers who have taken time off from employment, such as to raise a family or care for older relatives, may have gaps in their NI contribution history.
How much does it cost?
Making up for one year of missed NI contributions will cost you up to £907.40, which will add £302.64 per year or £5.82 per week) to your pre-tax State Pension. However, the rate you pay depends on which year you’re topping up.
If you don’t top up your State Pension you’ll get an amount which reflects the number of years you have full NI contributions for.
If you have 30 years of NI contributions, then you’d get 86% of the full State Pension, £190.23 per week (2024/25).
You can top up your NI in two ways via the Gov.uk website:
You can’t pay to increase your State Pension beyond the maximum of £221.20 per week (2024/25).
