A deadline for UK workers seeking to plug gaps in their national insurance contributions has been extended by a further two years to allow people to claim their full state pension.
Pensions minister Laura Trott on Monday said the deadline for those looking to plug a gap in their national insurance contributions as far back as 2006 had been extended to April 5 2025.
The decision follows an earlier three-month extension announced in March, after savers experienced lengthy wait times on a dedicated helpline. Individuals are able to view shortfalls online but cannot determine their eligibility to plug gaps in contributions.
The extension means anyone with a gap has enough time to determine how much they should contribute to receive a full state pension. Individuals are currently able to pay little over £800 to plug a full year’s gap in contributions, entitling them to an extra 1/35 of their state pension.
“This allows [savers] to pay dirt cheap rates, and for some people they can fill in lots of years and get thousands of pounds back [in state pension],” said Steve Webb, a former pensions minister and partner with LCP, an actuarial consultancy.
Changes to the deadline apply to anyone who reached or will reach the state pension age from April 2016 onwards, when a new flat rate contribution was introduced. After April 2025, anyone seeking to contribute will only be able to backfill six years.
The current system requires workers to make at least 10 years of national insurance contributions to receive a partial state pension, which is paid out proportionally up to the maximum 35 years contribution. In the 2022-23 tax year, the full state pension is worth £10,600.
“With the deadline extended, there is no immediate rush for people to complete gaps in their record and they will have more time to spread the cost,” said Victoria Atkins, financial secretary to the Treasury.
Those in receipt of working tax credit, universal credit or carer’s allowance are able to fill their records for free for the corresponding period. However, they need to contact the government’s helpline to establish whether paying would increase the value of their state pension.
Webb said that recent publicity served to drive demand, resulting in the helpline becoming overwhelmed. “Hopefully in the next 18 months, they can train more people, [though] the other best thing would be if the government’s own website told you what you needed to do.”
Those seeking to make contributions should consult the Future Pension Centre at the Department for Work and Pensions. The helpline number is 0800 731 0175.
