HMRC delay ‘could take 8 weeks’ for state pension to be updated - but you won’t lose out

A significant number of individuals made voluntary National Insurance contributions before the April 5 deadline to enhance their state pension. However, many are now left waiting to enjoy the promised benefits.

The amount of state pension you receive is determined by your National Insurance record. If there are gaps in this record, you can voluntarily purchase National Insurance contributions to fill these gaps and increase your state pension forecast. Until April 5, this was possible for any gaps in your record between 2006 and April 2019. Those who managed to make their contributions just before the deadline may not have seen a change yet, even if they're already receiving state pension.

This is due to the fact that the process to upgrade your state pension through voluntary National Insurance involves two separate departments.

The process begins with HMRC, who need to update your National Insurance record. Once this is done, it moves to the DWP who recalculates your state pension forecast.

Only then is it confirmed and your state pension payments updated.

BBC's Money Box heard from one listener who submitted her contributions in December. While her record was quickly updated by HMRC, she had to wait more than 11 weeks for her state pension payments to be updated by the DWP.

HMRC told the programme that some cases could require up to eight weeks to update, depending on the payment method and the complexity of each case.

Sir Steve Webb mentioned that while delays can be exasperating, those impacted won't lose out financially.

He pointed out that the government will retroactively adjust your payments according to when your money was first recorded in their system, not when they completed processing and recalculating your entitlement.

The ex-pensions minister remarked that the seemingly intricate procedure is longstanding.

He stated: "It's different departments with different ministers and this is how it's been for decades."

Moreover, he stressed that DWP and Pension Service engage with these issues only after HMRC has updated one's National Insurance record. Hence, if your record remains unamended, HMRC should be contacted; however, if it is updated, then inquiries should be directed to DWP, as Sir Steve advised: "Sometimes people are chasing the wrong end of the system."