Rewritten Article:
The State Pension Top-Up Crunch: A Long Wait Ahead?
Delay in processing state pension top-ups: A retiree learns from DWP that wait may extend up to six to eight months
A deluge of last-minute requests to boost state pensions ahead of the April deadline has reportedly caused a six to eight-month backlog in processing payments, according to feedback from This is Money readers.
Sharon Gray, a retired civil servant from Herefordshire who paid £6,000 in March, was informed about this delay by a Department for Work and Pensions (DWP) staff member.
At 66, Mrs. Gray found herself scrambling to find out when her state pension would increase, and when she questioned the DWP about their priorities, she was told they were not prioritizing cases for people already receiving a state pension.
Mrs. Gray expressed her concerns, "It didn't sound like the DWP had put extra staff on managing top-up payments, and I was then told, 'We're just working our way through them, and you have to wait.''
However, the DWP has since asserted that they are, in fact, prioritizing the cases of people over 66 and have doubled the staff working on top-ups.
With concerns raised by multiple readers, it seems that a considerable number of people are facing this delay, with two readers paying in November still yet to see records updated, and a reader living in France who paid in January still awaiting an increase in her payments.
The DWP is undoubtedly under pressure due to the surge of new top-ups payments in recent months. Readers' worries about whether they should take out loans to buy top-ups, in light of publicity surrounding the deadline, are also a cause for concern.
Mrs. Gray highlights the general public's unawareness of the six to eight-month wait for state pension top-ups processing, and warns that some people might suffer financial hardship as a result.
Are YOU in the state pension top-ups backlog?
Are you struggling to secure your top-ups payment? Or did you request a callback from the DWP?
If you have paid and heard nothing more, or you are still waiting for a callback, send an email to [email protected]
Sharing her thoughts, Mrs. Gray comments, "I was surprised there hasn't been any coverage of this delay, especially considering the level of publicity surrounding the voluntary National Insurance contribution deadline. I was also surprised that they have no mechanism for prioritizing updates for individuals already receiving state pension."
One of the readers who reached out to us this week mentioned that, without receiving the increase they paid for, they would struggle to pay bills.
In response to Mrs. Gray's concerns, a DWP spokesperson stated, "We are prioritizing customers over state pension age so they can receive the immediate support to which they are entitled. We have doubled the number of staff on the team and are working at pace to process payments to customers."
Former Pensions Minister Steve Webb, who is This is Money's retirement columnist, cautions, "For those already over state pension age and short of a full pension, it cannot be right that they have to wait months to get their pension reassessed. The Government should have anticipated the surge of payments and prepared extra capacity to keep processing times manageable."
State Pension Top-Ups: To Buy or Not to Buy?
Buying top-ups can significantly boost your retirement income by targeting the correct years in your record. Check out This is Money's guide to state pension top-ups for cost breakdowns and six guidelines to help you decide if you should fill gaps in your NI record. The Government offers more information about buying top-ups on their official website.
- Sharon Gray, a retired civil servant from Herefordshire who paid £6,000 in March, is one of the many people facing a delay in processing their state pension top-ups, with a reported six to eight-month backlog.
- Mrs. Gray, along with other readers, expressed concerns about the DWP's priorities, as she was informed that they are not prioritizing cases for people already receiving a state pension.
- The DWP has since asserted that they are, in fact, prioritizing the cases of people over 66 and have doubled the staff working on top-ups to manage the surge of new payments.
- Despite the DWP's reassurances, two readers who paid in November are still waiting for their records to be updated, and a reader living in France who paid in January is still awaiting an increase in her payments.
- The delay in processing state pension top-ups is cause for concern, especially as some readers have mentioned they would struggle to pay bills without receiving the increase they paid for.
- Former Pensions Minister Steve Webb, who is This is Money's retirement columnist, cautioned that it cannot be right for people over state pension age to wait months to get their pension reassessed, and that the government should have anticipated the surge of payments and prepared extra capacity to keep processing times manageable.
