Pensioners hoping to boost their state pension by purchasing National Insurance (NI) top-ups have been warned of significant delays in processing payments. According to reports, delays of up to eight months are expected, as a surge in applications has caused a backlog in processing these contributions.
The Department for Work and Pensions (DWP) has responded by doubling the number of staff dedicated to handling these claims, but many pensioners are still facing prolonged waits. In recent months, thousands of pensioners have paid voluntary contributions to fill gaps in their National Insurance records and increase their state pension payouts. The surge comes ahead of the final deadline for making such payments, which passed on April 5.
Processing Delays Spark Frustration
The DWP has acknowledged the delays, citing a six to eight-month processing time for pension top-ups. Some pensioners, like Sharon Gray, a retired civil servant from Herefordshire, have already made their contributions but are still waiting for their state pensions to reflect the updated records.
According to Gray, when she contacted both HMRC and the DWP in March, she was informed that the processing time was unusually long. “We are just working our way through them, and there is nothing you can do. You have to wait,” she was told by a staff member.
The situation is affecting not only pensioners who have recently made top-up payments, but also those who have already begun receiving their state pensions. These individuals are concerned that delays may affect the timing of their enhanced payments. For pensioners over the age of 66, it is important to note that the backdated payments will eventually be issued once the records are updated, so no money will be lost.
DWP Responds to Growing Concerns
The DWP has insisted that it is prioritising the cases of those over state pension age and has increased staff numbers to handle the surge in applications. A spokesperson for the DWP stated, “…We are prioritising customers over state pension age so they can receive the immediate support to which they are entitled. We have doubled the number of staff on the team and are working at pace to process payments to customers.”
However, some experts, including former Pensions Minister Steve Webb, have criticised the government for not anticipating the surge in applications and failing to scale up operations in time. Webb, now a partner at LCP, highlighted the financial impact of the delays. “For those who are already over state pension age and short of a full pension, it cannot be right that they have to wait months to get their pension reassessed.” he said.
Pensioners who are still waiting for their top-up payments will likely face a long wait, but they can rest assured that backdated payments will be made once the delays are resolved. However, the situation has sparked concern about the efficiency of the system and the impact of delayed payments on pensioners’ finances.
