DWP reports retiree confronted with waiting period of six to eight months for state pension top-ups
Rewritten Article:
The frenzied rush to secure state pension top-ups before the April deadline has apparently left a staggering six to eight-month queue for processing these payments, based on feedback from This is Money readers.
Sharon Gray, a retired civil servant from Herefordshire who parted with £6,000 in March, was informed of this delay by a Department for Work and Pensions representative itself.
At 66, Sharon expressed concern over the situation. She reached out to both HMRC and DWP, the agencies responsible for managing the top-ups service jointly, to inquire about the expected boost to her state pension.
In a disconcerting conversation, Sharon was told that people like her - those already receiving state pension - were not being prioritized for processing. The representative even hinted at a lack of additional staff dedicated to addressing the surge in top-ups payments.
However, the DWP has since informed us that they are in fact prioritizing the cases of individuals over 66 and have doubled their team working on top-ups payments - see their statement below.
This week, This is Money has also received accounts from two other readers who purchased top-ups in November, with one of them set to turn 66 and start receiving his state pension later this month, yet half a year has passed without their records being updated.
Another reader, who resides in France and is already 66, shared that she paid in January and is still waiting for an increase in her payments.
Sharon Gray: A DWP staff member informed her of a six to eight-month wait to boost her state pension
Recently, we reported on pensioners who found themselves falling short of their state pension at 66 due to lost top-ups payments and criticized the subpar service.
These cases are merely the latest in a series of lost state pension top-up payment incidents - one instance spanning three years - and the struggles faced by individuals in convincing government staff to help recover their funds.
DWP and HMRC have been inundated with a wave of new top-ups payments in recent months as savers scrambled to meet a critical deadline.
The agreement to acquire voluntary state pension top-ups dating back to 2006-07 has now expired, although you can still backdate purchases for the past six years.
In response to the overwhelming volume of enquiries, the DWP launched a callback service that has now wrapped up. If you signed up, you should be contacted to discuss your situation, pending the opportunity for purchasing top-ups for earlier years.
Individuals over 66 will receive state pension arrears dating back to the time of their top-up payment, ensuring they won't experience an ultimate shortfall.
Sharon Gray shares her concerns about the public's general ignorance regarding the six to eight-month wait for top-ups payments processing and the potential financial hardship for those unable to afford the delay.
Are YOU stuck in the state pension top-ups backlog?
Have you requested a top-ups payment? Or did you request a callback from DWP?
If you've paid but haven't received any follow-up, or you're still waiting for a callback, contact us at: [email protected]
Sharon Gray voices her surprise about the lack of media coverage regarding this delay, especially considering the attention garnered by the voluntary National Insurance contribution deadline. She also questions whether others might be receiving similar responses from DWP and if additional resources are being allocated to address this issue.
One of the readers who reached out to us this week shared that they would be struggling to pay bills if they don't receive the increase corresponding to their paid top-up.
A DWP spokesperson responded to Sharon's comments, stating: "We do not acknowledge these claims and we are prioritizing customers above state pension age to ensure they receive the immediate support they are entitled to. We have doubled the staff on our team and are working diligently to process payments for customers."
Former Pensions Minister Steve Webb, This is Money's retirement columnist, comments: "For those who are already over state pension age and lacking a full pension, it's unjustifiable for them to wait months for their pension reassessment. The government should have prepared for the influx of payments leading up to the final deadline and implemented additional capacity to maintain processing speeds."
Webb, a partner and pension consultant at LCP, adds: "As things stand, people are forfeiting the interest on hundreds or thousands of pounds in contributions and must simply wait until their case reached the top of the queue."
Should YOU purchase top-ups to boost your state pension?
Acquiring top-ups can provide a substantial boost to retirement income if the correct years are chosen on your record.
This is Money's guide to state pension top-ups offers useful insights on the cost and provides six essential rules for deciding whether to fill in gaps by Steve Webb.
The government provides more information about buying top-ups here.
- Sharon Gray, a retired civil servant from Herefordshire, was initially informed of a six to eight-month wait to boost her state pension.
- The DWP has confirmed that they are prioritizing the cases of individuals over 66 for processing state pension top-ups, and have doubled their team working on top-ups payments.
- This week, This is Money received accounts from two other readers who purchased top-ups in November, with one of them yet to receive an update to their records six months later.
- A reader living in France, who is already 66, shared that they paid in January and are still waiting for an increase in their payments.
- Sharon Gray expresses concern about the public's general ignorance regarding the processing delay for top-ups payments and the potential financial hardship for those unable to afford the delay.
- Steve Webb, This is Money's retirement columnist, criticizes the delay in processing state pension top-ups for those already over state pension age and suggests the government should have prepared for the influx of payments and implemented additional capacity to maintain processing speeds.
- Acquiring top-ups can provide a substantial boost to retirement income if the correct years are chosen on your record; This is Money's guide to state pension top-ups offers useful insights on the cost and provides six essential rules for deciding whether to fill in gaps.
