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

A telephone outage has forced the government to tell desperate savers blocking its lines that it could accept state pension supplements after April 5.

The new taped message – admitting an “unprecedented demand” on phone lines – came as Lib Dem pensions spokeswoman Wendy Chamberlain demanded that a tight deadline for people to increase their state pensions be pushed back to 2025.

This is Money has called for an extension, as has our columnist and former pensions minister Steve Webb, following a deluge of messages from readers complaining about phone lockouts.

Buying state pension supplements can give a big boost to retirement income if you buy or fill in the right years, and right now the usual six-year term is being extended to 2006/07 – a special deal that expires April 5.

We exclusively revealed the telephone outage on pension supplements at the Ministry of Work and Pensions a few weeks ago, after readers told us they were struggling to get through and find crucial information about whether it was worth taking voluntary pay national insurance contributions.

We filed a case file with the DWP and HMRC last week – and many more reader reports have come in since then.

It can be difficult to figure out which years will benefit you individually, and the government itself and other money experts warn you that you should contact the Future Pension Center before handing over your money.

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

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

The message reads: ‘Although we expect you to do everything possible to pay the voluntary national insurance contributions before April 5, 2023, we understand that due to circumstances beyond your control, this is not always possible.

“Don’t worry if you can’t get through it. HMRC will consider accepting voluntary contributions paid by NICs after April 5 if paid on time due to the unprecedented demand for HMRC and DWP telephone lines.”

And the government told This is Money: “If for reasons beyond their control, customers are unable to make voluntary contributions before April 5, 2023, we will review 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 of the April 5 deadline to buy additional years stretching back to 2006.

She is launching a bill for members today, urging the government to take action. She said the failure to provide aid to retirees and would-be retirees before the fast-approaching deadline “borders on a national scandal.”

Her bill also requires the DWP to disclose performance data on the Future Pension Center’s advice to the public on buying top-ups.

“Apparently the Conservative government has not prepared to help those who will be most affected and who need to get Liberal Democrat legislation to prevent hundreds of thousands of pensioners through no fault of their own being left without their full state pensions,” Chamberlain says. .

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

Readers contacting This is Money complain:

– They can never reach the DWP, despite repeated attempts over many days

– When they call, they hear the busy signal or reach the automated options menu only to be cut off every time

– They need an 18 digit number to top up online but can’t get one

– Not even a Chartered Accountancy firm could help, without access to crucial advice from the Future Pensions Center on which years of contributions to buy

– Their future income for the rest of their lives depends on reaching the DWP and getting help buying top-ups.

Steve Webb, who is now a partner at pensions adviser LCP, says of the Liberal Democrats’ attempts to raise the issue in parliament: “It is good news that MPs are putting pressure on the government to extend the deadline for state pensions. extend additions.

“The DWP has always made it clear that people should check before handing over cash for voluntary NI contributions, but they don’t have enough people answering the phone to make that happen.

‘The risk is that people will either pay money that will be thrown away or that they will simply give up and miss out on the chance of an increase in their pension.

“A formal extension of the deadline must now be announced so that people can make a calm and well-informed decision about their AOW benefit.”

A government spokesperson says: ‘Voluntary national insurance contributions do not always increase your AOW.

“Clients should ensure they are benefiting before making payments, including to fill gaps in their National Insurance data between April 6, 2006 and April 5, 2016.

‘The fastest and easiest way for customers to view information about their state pension and national insurance file is online. If customers need to contact us, we make sure calls are answered as quickly as possible.”

The government expects people to do everything they can to buy top-ups before the April deadline.

But if they’ve done everything they can to get the appropriateness of a payment and to make payment on time, it intends to use understanding 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 numbers to help people trying to buy top-ups before the deadline and by how much.

And we asked about the average wait time for calls to the Future Pension Centre, and what percentage of people give up after being on hold. However, we have not received an answer to these questions within our deadline.

> Top up your state pension? Discover Steve Webb’s golden rules here