Government hints state pension top-ups deadline in April is NOT final

Wendy Chamberlain MP:  Telling pensioners and soon-to-be pensioners to seek help ahead of April deadline and failing to provide it ‘verges on a national scandal’, she says

A phone meltdown has forced the Government to tell desperate savers jamming its lines that it MIGHT accept state pension top-up payments after April 5.

The new recorded message – admitting ‘unprecedented demand’ on phonelines – came as Lib Dem pensions spokeswoman Wendy Chamberlain demanded a crunch deadline for people to boost their state pensions is pushed back until 2025.

This is Money has called for an extension, and so has our columnist and former Pensions Minister Steve Webb, after a deluge of messages from readers complaining of phone gridlock.

Buying state pension top-ups can give a generous boost to retirement income if you buy or fill up the correct years, and right now the usual six year deadline is extended back to 2006/07 – a special deal that expires on 5 April. 

We exclusively revealed the pension top-up phone logjam at the Department for Work and Pensions several weeks ago, after readers told us they were struggling to get through and find out crucial information on whether it was worth paying voluntary National Insurance contributions.

We submitted a dossier of cases to the DWP and HMRC last week – and many more reader messages have arrived since then.

It can be hard to work out which years if any will benefit you individually, and the Government itself and other money experts warn you should check with the Future Pensions Centre before handing over your cash.

This information line is run by the DWP, but the top-up payments of up to £824 for each year – less for a part-year gap – must be made to HMRC.

The DWP has added a new phone menu voice message to callers about top-ups.

The message says: ‘Whilst we expect you to make every effort to make payments for voluntary National Insurance contributions by 5 April 2023 we understand it may not always be possible due to circumstances beyond your control.

‘Don’t worry if you can’t get through. HMRC will consider accepting voluntary contributions NICs paid after the 5 April as paid on time due to unprecedented demand on HMRC and DWP phone lines.’

And the Government told This is Money: ‘If customers are unable to pay voluntary contributions by 5 April 2023 for reasons beyond their control, we will consider payments made after the deadline on a case-by-case basis.’

Meanwhile, Liberal Democrat Work and Pensions Spokesperson Wendy Chamberlain has called for an urgent two-year extension to the April 5 deadline to buy extra years going back to 2006.

Launching a Private Member’s Bill today pressing the Government to act, she said the failure to provide help to pensioners and soon-to-be pensioners ahead of the rapidly approaching deadline ‘verges on a national scandal’.

Her Bill also demands the DWP reveal performance data about the Future Pension Centre’s provision of advice to the public about buying top-ups.

‘Evidently, the Conservative Government did not prepare to help those who will be most affected and need to be presented with Liberal Democrat legislation to stop hundreds of thousands of pensioners being left without their full state pension through no fault of their own,’ says Chamberlain.

The suggestion that HMRC will ‘consider’ accepting late payments might offer some reassurance to This of Money readers, who have bombarded us with messages about their concerns of missing out on buying potentially valuable top-ups.

Readers contacting This is Money complain:

– They can never get through to the DWP despite repeated attempts over many days

– When they call, they either hear the engaged tone or reach the automated options menu only to get cut off every time

– They need to get hold of an 18-digit number to make a top-up payment online, but can’t obtain one

– Even a chartered accountancy firm could not help, without access to crucial advice from the Future Pensions Centre on which years of contributions to buy

– Their future income for the rest of their life depends on getting through to the DWP and receiving help buying top-ups.

Steve Webb, who is now a partner at pension consultant LCP, says of Liberal Democrat efforts to raise the issue in Parliament: ‘It is good news that MPs are putting pressure on the Government to extend the deadline for state pension top-ups.

‘The DWP have always made it clear that people should check before handing over cash for voluntary NI contributions, yet they haven’t get enough people answering the phones to make that possible.

‘The risk is that people will either pay money that will be wasted or that they will just give up and miss out on the chance to boost their pension.

‘A formal extension to the deadline needs to be announced now so that people can make a calm and well-informed decision about their state pension.’

A Government spokesperson says: ‘Voluntary National Insurance contributions do not always increase your state pension.

‘Customers should make sure they would benefit before making any payments, including to fill gaps in their National Insurance records between 6 April 2006 and 5 April 2016.

‘The quickest and easiest way for customers to see information about their state pension and National Insurance record is online. If customers need to contact us, we will ensure calls are answered as quickly as possible.’

The Government expects people to make every effort to buy top-ups before the April deadline. 

But if they have done everything they can to confirm the suitability of a payment and make the payment on time, it plans to take an understanding approach and consider matters on a case-by-case basis, depending on individual circumstances. 

This is Money asked the DWP and HMRC if they have increased staff levels to help people trying to buying top-ups before the deadline and by how many.

And we asked for the average call waiting time to the Future Pension Centre, and what percentage of people give up after being on hold. However, we received no response to these questions by our deadline.

> Want to top up your state pension? Find out Steve Webb’s golden rules here

This post first appeared on Dailymail.co.uk