Top-up deadline moved to 31 July 2023

HMRC announced on 7 March that members of the public would be given until 31 July to top up their National Insurance credits, extending a deadline that had previously been set at 5 April¹. The extension followed a surge in calls to the Department for Work and Pensions and HMRC and reports of long waiting times¹.

Under normal rules it is only possible to fill gaps in a National Insurance record for the past six years, with each year's deadline falling on 5 April, by buying voluntary Class 3 National Insurance contributions¹. After the deadline the gap becomes permanent and could affect how much state pension a person is entitled to¹. The DWP temporarily relaxed this rule in 2014, allowing some people to fill gaps for any year from 2006-07 onwards¹. The relaxed rules were due to end on 5 April¹.

The concession applies only to those under the new state pension system, meaning people who reached, or will reach, state pension age after 5 April 2016¹. A man born after 5 April 1951 or a woman born after 5 April 1953 has until 5 April 2023 to pay voluntary contributions to make up for gaps between April 2006 and April 2016¹. At least 10 qualifying years of contributions are needed to receive any state pension, and 35 years to get the full amount¹.

All voluntary National Insurance payments will be accepted at the existing 2022-23 rates¹. The current cost of Voluntary Class 3 NI contributions is £15.85 per week, or £824.20 per year¹. Voluntary contributions for gaps in 2021-22 cost £15.40 per week, and for gaps in 2020-21 the cost is £15.30 per week¹.

Topping up can add up to £275 to a pre-tax state pension per year, described as 1/35 of the full rate of the state pension worth £9,627.80 a year¹. After three years of receiving higher payments, a person could get back what they had paid for the Voluntary Class 3 NICs¹. Sir Steve Webb of Lane, Clark and Peacock said someone with 10 missing years could pay out a little over £8,000 to fix the gaps, but see a boost of £55,000 in state pension over a typical 20-year retirement¹.

HMRC said tens of thousands of people have taken advantage of the scheme, and the extension means there is no immediate rush for people to complete gaps and they will have longer to spread the cost¹.

Why it matters for households

The deadline governs how long people with gaps in their National Insurance record have to pay voluntary National Insurance contributions covering years back to 2006-07¹. Once a year falls outside the window, the gap becomes permanent and can reduce the state pension eventually paid¹. The people affected are those who reached or will reach state pension age after 5 April 2016, including men born after 5 April 1951 and women born after 5 April 1953¹. Payments made under the extension are charged at 2022-23 rates¹.

Not everyone gains from paying. Those short of a full state pension because of extensive periods of contracting out are among the groups for whom historic contributions will not boost payments¹. The government directs people below state pension age to the Future Pension Centre, and those already at state pension age to the Pension Service, to find out whether they would benefit¹. Some gaps can be filled free through National Insurance credits, particularly where they arose from illness, looking after children or unemployment¹. Carer's Credit is one route for people with caring responsibilities¹.

What happens next

The deadline for topping up is 31 July 2023¹. No further extension has been reported.