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Daily Mirror
Daily Mirror
Business
Ruby Flanagan

Thousands of savers given more time to boost pension by £10,000s as deadline extended

Thousands of savers have been given more time to plug gaps in their National Insurance record and potentially boost their state pension by tens of thousands of pounds.

The Department for Work and Pensions (DWP) has extended the deadline for buying voluntary National Insurance payments.

Originally, the last day to top up your National Insurance Contributions for tax years dating back to 2006 was April 5, 2023.

However, the DWP announced today that the deadline has now been extended until July 31, 2023.

The official extension comes after members of the public raised concerns as many were struggling to get through to jammed DWP and HMRC phone lines.

Alongside the announcement today, the Treasury said that it had listened to public concerns and had acted on them.

Victoria Atkins, Financial Secretary to the Treasury, said: "We recognise how important State Pensions are for retired individuals, which is why we are giving people more time to fill any gaps in their National Insurance record to help bolster their entitlement."

To receive the full new state pension, you need to have at least 35 years of National Insurance contributions, and ten years to get anything at all.

As part of the "transitional arrangements" to the new state pension, taxpayers have been able to make voluntary contributions to make up for any incomplete years in their National Insurance record between April 2006 and April 2016.

After the now July 31 deadline, people will only be able to purchase missing National Insurance contributions for up to six years.

Last week, the DWP said it was going to "consider" contributions made by people after the April deadline on a case-by-case basis due to the busy phone lines.

The news first came to light after a recorded message was placed on a phoneline for the Future Pension Centre.

A Government spokesperson then officially confirmed the move in a statement reiterating what was said in the recorded message.

One reason the service has been slammed with calls is most likely due to the public awareness campaign fronted by the Money Saving Expert Martin Lewis.

Over the last year, the consumer rights champion has urged those aged between 45 and 70 to check their national insurance records to see if they could boost their state pension.

Tom Selby, head of retirement policy at AJ Bell said the extension was a "pragmatic and welcome step" by the Government adding that it would have been a PR disaster if people missed out as a result of a "telephone logjam".

He said: "Today's announcement should help ease the strain on the government's phone lines and will hopefully provide sufficient leeway to ensure anyone who wants to pay voluntary National Insurance going back to 2006 is able to do so.

"If you are considering paying voluntary National Insurance it is vital you think carefully about the decision, as while it will be a savvy move for some, it will not benefit everyone. Before parting with any cash, contact the Government's Future Pension Centre, who should be able to tell you whether or not paying voluntary National Insurance will increase your state pension entitlement."

There are examples of ways you may be eligible for National Insurance credits for free on the GOV.UK website.

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