People have been given nearly two extra years to plug gaps in their national insurance (NI) record going back to April 2006, following another deadline extension.
The original cut-off for voluntary NI contributions from April 2006 to April 2017 was April 5 2023 but in March this deadline was extended to July 31 2023.
Now, HM Revenue and Customs (HMRC) has said the deadline will be extended until April 5 2025.
Extending the deadline until 2025 means that people have more time to properly consider whether paying voluntary contributions, which could boost their state pension entitlement, is right for them, the Government said.
It added that tens of thousands of people have taken advantage to pay voluntary contributions and the revised deadline is expected to enable tens of thousands more to do the same.
I am pleased to see so many people taking steps to review their state pension, which is why we have extended the deadline for customers to add extra years to their national insurance record— Laura Trott, Minister for Pensions
Victoria Atkins, Financial Secretary to the Treasury, said: “People who have worked hard all their lives deserve to receive their state pension entitlement, and filling gaps in National Insurance records can make a real difference.”
Minister for Pensions Laura Trott said: “I am pleased to see so many people taking steps to review their state pension, which is why we have extended the deadline for customers to add extra years to their national insurance record.”
The extension will mean men born after April 5 1951 or women born after April 5 1953 have more time to check their records and decide whether to pay voluntary contributions to make up for gaps they may have in their NI record from April 2006.
People can usually only pay voluntary NI contributions for the previous six tax years. The deadline is April 5 each year.
Sir Steve Webb, a partner at consultants Lane Clark & Peacock and a former pensions minister, said: “I am delighted that the Government has announced a major extension to the deadline for paying voluntary NI to top up state pensions.
“This is a complex area with great potential for people to improve their position but also the risk that they may get things wrong.
“It is essential that people can talk through their options with the DWP (the Department for Work and Pensions) before making any payments, and this has simply been impossible for too many people because of lack of phone capacity.
“This significant extension should give time to train up enough people to handle the volume of calls that are now being made and enable everyone to take advantage of this opportunity if it is right for them.”
Alice Haine, personal finance analyst at investment platform Bestinvest said: “Buying back missed years is a great way to bolster retirement income with this window of opportunity to backdate contributions all the way to 2006 something not to be ignored.
“The deadline extension will not only give the Government time to catch up on the volume of inquiries, but also allow more taxpayers to find out if they would benefit from making up any missing years.”
