Thousands of Britons were left in the lurch as they were blocked from topping up their state pensions just before a crucial deadline, putting them at risk of losing out on a valuable increase to their retirement income. The April 5, 2025, deadline marked the final opportunity for individuals aged between 40 and 73 to plug holes in their National Insurance (NI) history to enhance state pension entitlements stretching back to 2006.
According to MoneySavingExpert.com (MSE), approximately 21,000 people logged onto the HM Revenue and Customs (HMRC) portal on Saturday, April 5, in an attempt to log qualifying years of NI contributions, which can be accrued through work and certain benefit claims. However, those hoping to top up their pension savings at the last minute were met with frustration when the online service for paying missing contributions from 2006/7 to 2020/21 unexpectedly shut down a day early.
HMRC has acknowledged the premature closure of the portal and assured MSE that anyone affected by the glitch will be contacted directly to ensure they do not miss out. An HMRC spokesperson stated, "We're sorry that customers were unable to use our online service on Saturday to top up National Insurance contributions for years prior to 2021. We will contact anyone affected directly about the payments they wanted to make to ensure they don't miss out."
Social media users expressed their frustration over the issue, with one individual commenting, "Unfortunately, it seems that the Government closed the portal for NI top-ups ahead of [the] deadline! Shame they didn't stick to their own published deadline of today." This incident has raised concerns about the effectiveness of the online system, which was launched in April 2024.
Eligible UK residents had until April 5 to review their NI records and fill any gaps dating back to April 6, 2006. After this date, voluntary contributions can only be made for the last six tax years, currently up to the 2019/20 period. HMRC data indicates that around 120,000 people filed over 260,000 years' worth of NI gap payments in the months following the launch of the digital service.
Filling these NI gaps can significantly boost individuals' current and future state pensions by potentially tens of thousands of pounds, as reported by MSE. People also had the option to arrange paying their voluntary NI contributions by filling out an online callback request form provided by the Department of Work and Pensions (DWP), which also had a deadline of April 5, 2025. The Government assured that this callback form was introduced so that "no one misses out" amid high demand.
As UK residents raced against the clock to boost their state pension by filling NI gaps before the April 5 deadline, HMRC's online hiccup caused a stir. The blunder has prompted calls for better systems to be put in place to accommodate the high volume of last-minute requests, especially as the deadline approached.
Steve Webb, partner at pension consultants LCP, remarked on the situation, saying, "There is always a rush of activity just before deadlines, so the system should have been set up to allow top-up payments right up to the final day. It is good news, however, that those who logged on to pay last-minute top-ups should not lose out as HMRC has undertaken to contact them and allow payments after the deadline."
Despite the chaos surrounding the portal's closure, individuals still have options available to them. While the deadline for topping up years from 2006 to 2018 has passed, they can still make top-ups for the last six tax years, going back to 2019/20. For those who submitted a request by the April 5 deadline for the DWP callback form, they will still be contacted and can purchase missing years back to 2006.
The state pension system is critical for many Britons, especially as the new state pension, introduced in 2016, requires individuals to have at least 35 years of NI contributions to qualify for the full amount. Currently, the full state pension is worth £230.25 a week, which can significantly impact an individual's financial security during retirement.
In summary, while the HMRC blunder has caused significant concern and frustration, the Government has assured those affected that they will have another chance to fill in the gaps in their NI records. As the situation develops, it remains crucial for individuals to stay informed about their state pension entitlements and any potential changes to the system.
