Rush to secure a £5,500 DWP State Pension increase before deadline

Thousands are rushing to meet a deadline that could increase their State Pension income by £5,500 in old age. A large portion of the UK workforce, primarily women, can significantly boost the pension they're entitled to by paying HMRC to cover any years they missed making National Insurance contributions.

There are several reasons why people might have gaps in their records, including periods spent abroad, low earnings periods, self-employment without contributions, or career breaks for childcare and family responsibilities. This means they may not have accumulated the 35 years of NI contributions needed to receive the maximum new state pension or the 30 years required for the lower basic state pension.

Currently, Brits can enhance their State Pension payments by filling gaps in NI payments dating back to 2006, however this scheme is set to end on April 5, 2025. After the deadline, people will only be able to fill gaps from the previous six years.

It costs approximately £824 for each year of missing NI contributions which will add £330 a year to your pension – adding up to around £5,500 extra based on a typical lifespan. To date, over 10,000 payments worth £12.5million have been made to boost people’s state pension, according to figures from HM Revenue and Customs (HMRC).

Heather Suttie, 50, realised she was missing three years of National Insurance contributions due to academic pursuits and time spent abroad. Urged by advice spotted on Martin Lewis' social media, Suttie stated: "I realised I could pay to fill the gaps in my record going back to 2006 thanks to Martin Lewis, and that the extended deadline closes in April."

After investing about £2,500 for additional NI contributions, she secured her full state pension eligibility.

"It only took around 30 minutes to check for NI gaps, work out if it was worth plugging them and sort it. It's so worth it," she commented. Mike Ambery, from Standard Life, warned: "After the deadline, you'll only be able to plug gaps from 2019 onwards so there could be 13 years that you will lose the ability to buy back."

He added: "Time moves fast and there's now less than six months to go. Paying voluntary National Insurance contributions could make a difference in retirement, but it's not right for everyone."

Tom Francis from Octopus Money advised GB News: "Purchasing extra NI years can be a great way to achieve a guaranteed boost in income every year after you retire."

Those who need to review their National Insurance record are directed to visit here or use the HMRC app. The online service may not be suitable for everyone, particularly those who were self-employed or lived abroad during the relevant period. Free advice is available through MoneyHelper on 0800 011 3797.