State pension warning as retirees face eight-month delays for payment increases after DWP top-up shake-up

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GBNEWS
Temie Laleye

By Temie Laleye


Published: 05/05/2025

- 12:36

To get the full new state pension, Britons need 35 qualifying years on their National Insurance record

Pensioners who topped up their National Insurance records have been issued a warning as they could potentially be waiting months to see their state pension increases.

Some retirees who have already paid substantial sums are being told they must simply wait their turn in the queue.


Pensioners who paid thousands of pounds to top up their state pension before the April 5 deadline could face waits of six to eight months before seeing any increase in their payments.

The rush to buy state pension top-ups has reportedly caused a significant backlog in processing payments, according to feedback from pensioners.

The Department for Work and Pensions (DWP) has denied these claims, insisting they are prioritising older customers. However the situation has sparked criticism from pension experts who say the Government should have anticipated the surge in applications.

Sharon Gray, a retired civil servant from Herefordshire, paid £6,000 in March to top up her state pension.

Couple looking worried

The Department for Work and Pensions (DWP) has denied these claims, insisting they are prioritising older customers

GETTY

When she contacted both HMRC and the DWP to inquire about when her pension would increase, she was informed of the lengthy wait time by a staff member of up to six to eight months.

Gray explained to This is Money that she was told: "We are just working our way through them and there is nothing you can do. You have to wait."

According to Gray, it didn't appear that the DWP had allocated extra staff to process the backlog of top-up payments.

Two other readers who bought top-ups in November - one of whom will be 66 and start receiving his state pension later this month - but half a year later have not had records updated.

Pensioners look at statements

One pensioner explained that if they didn't receive the increase they had paid for, they would struggle to pay bills

PA

One pensioner explained that if they didn't receive the increase they had paid for, they would struggle to pay bills.

The situation has left many concerned, especially as there was significant publicity around the April 5 deadline for buying voluntary National Insurance contributions dating back to 2006/07.

A DWP spokesperson has firmly rejected these claims about lengthy delays. They said: "We do not recognise these claims and 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."

Steve Webb, former pensions minister has criticised the handling of the situation saying: "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.

"The Government must have known that there would be a surge of payments in the weeks and months leading up to the final deadline and should have put in place extra capacity to keep processing times down."

He added that pensioners are "losing out on the interest on hundreds or thousands of pounds in contributions" while waiting.

While pensioners face potentially lengthy waits, there is some reassurance for those already over 66. These individuals will receive state pension arrears dating back to when they made their top-up payment, in addition to their increase.

DWP logo on department wall

Under the current rules, Britons need 35 qualifying years on their National Insurance record to claim the full new state pension

PA

This means they won't ultimately see a financial shortfall in the long term.

Under the current rules, Britons need 35 qualifying years on their National Insurance record - some people may need more - to claim the full new state pension.

People normally need 10 years to receive anything at all. If their record has gaps, they could receive much less than they expected, but they can make voluntary contributions to fill them.

Before April 5, they could buy back missing National Insurance years dating back to 2006, but now they can only go back up to six tax years.