Heading: State Pension Top-Ups: Six to Eight Month Wait Ahead?
DWP reveals significant delay in processing state pension top-ups, with one retiree informed of a wait of six to eight months.
Wanting to bolster your state pension before the April deadline has led to a whopping six to eight month delay in processing additional payments, according to feedback from This is Money readers. Sharon Gray, a retiree from Herefordshire, was told by a DWP staff member that this was the current wait time, after she forked over £6,000 in March.
At 66, Mrs. Gray wasn't in a dire need for the state pension increase, but she wondered if others in the same boat might face financial strain during such a lengthy wait. Despite her concerns, DWP has since announced that they are prioritizing the cases of those aged 66 and above and have doubled staff working on top-ups.
This week, we've heard from other readers who paid for top-ups in November, yet haven't seen updates to their records. One of them, who is turning 66 and starting to receive the state pension this month, is still waiting for his records to reflect the increase. Another reader residing in France, who paid in January, is still waiting for a bump in her payments.
Time and again, we've reported on pensioners facing issues with lost state pension top-up payments. In recent months, there's been a huge influx of new top-ups payments as savers scrambled to meet the deadline. Although the deal to buy voluntary top-ups has now ended for 2006/07, it is possible to backdate for the past six years.
Despite the volume of enquiries, the DWP set up a callback service, which has since closed down. Regardless, if you signed up for one, you should still be contacted to discuss your situation and the option to buy top-ups for earlier years.
For those over 66, any state pension arrears that you're owed will be added to the date of your top-up payment, ensuring no shortfall in your expanded pension. If you find yourself amidst the backlog, wondering when you'll see that long-awaited increase, write to us at: [email protected].
Sharon Gray, who's currently experiencing the delay, expressed her surprise at the lack of coverage regarding this issue, especially considering the high-profile coverage of the voluntary National Insurance contribution deadline. She was also taken aback by the DWP's lack of mechanism to prioritize updates for pensioners already receiving state pension benefits.
If the delay in processing state pension top-ups causes financial hardship, it's disappointing that the general public remains largely unaware of the issue. Predictably, some people may have taken on loans to buy top-ups ahead of the deadline, leaving them in a pinch if their additional payments aren't processed in a timely manner.
Former Pensions Minister Steve Webb, who contributes to This is Money's retirement column, criticized the DWP for long wait times for those over state pension age. He argued that the Government should have anticipated the influx of payments near the deadline and increased capacity to keep processing times manageable.
Webb further explains that pensioners who are short of a full pension are losing out on interest on their contributions by sitting and waiting for their case to be addressed in the backlog.
In the event that you're contemplating upgrading your state pension, our guide to buying state pension top-ups explains the costs and offers six golden rules to help you decide if filling in the gaps is worthwhile. You can find more information about buying top-ups on the Government's website.
- Sharon Gray, a retiree from Herefordshire, is currently waiting for her state pension to reflect an increase after paying £6,000 in March.
- Despite DWP's announcement that they are prioritizing the cases of those aged 66 and above and have doubled staff working on top-ups, other readers who paid for top-ups in November are still waiting for updates to their records.
- If the delay in processing state pension top-ups causes financial hardship, it's disappointing that the general public remains largely unaware of the issue, predictably leaving some people who may have taken on loans to buy top-ups ahead of the deadline in a pinch if their additional payments aren't processed in a timely manner.
- Forming part of This is Money's retirement column, former Pensions Minister Steve Webb criticized the DWP for long wait times for those over state pension age.
- Our guide to buying state pension top-ups explains the costs and offers six golden rules to help you decide if filling in the gaps is worthwhile. You can find more information about buying top-ups on the Government's website.
