Disappearing State Pension Supplements: DWP and HMRC Strengthen Staffing to Tackle Pending Caseload
Frustrated citizens across the UK continue to experience delays with state pension top-ups as the Government grapples with a massive backlog of cases. The Department for Work and Pensions (DWP) and Her Majesty's Revenue and Customs (HMRC) are jointly responsible for managing this system, but a huge rush ahead of an April deadline to fill old gaps in state pension records has only worsened the situation.
Take Garry Wakefield, 67, who paid £7,400 for top-ups in March, only to have the money vanish seemingly into thin air. He also submitted a deferred state pension claim the same month, as he and his wife have recently retired to Spain, but is still left hanging, waiting for any word on when his payments might start.
Similarly, retired air traffic controller David Kirkwood, residing in Ayrshire, turned 66 in May, and a £3,200 top-up made last November remains unaccounted for on his record. Elaine Bowden, a 65-year-old retired microbiologist from Merseyside, handed over around £5,000 last November, but remains uncertain when she'll receive her state pension in August. She points out that she could have earned interest on the money for all that time, calling it a disgrace.
These delays have gone unaddressed until pressured by This is Money, and other cases like those mentioned below, where top-ups cash have apparently gone missing for up to a year, are yet to be resolved.
A government spokesperson admitted that the government has allocated all these customers' top-ups to their National Insurance records, but fails to explain the prolonged delays. They assert that additional staff is being deployed to process payments to tackle response times. However, former Pensions Minister Steve Webb questions, "Why should individuals settle for such a 20th–century approach when technology promises to streamline all of this?"
Webb, who is now This is Money's retirement columnist and a partner at LCP, emphasizes that these delays are significant to the individuals involved, despite seeming small to the government. He criticizes the complex state pension system, calling for a clear and straightforward explanation for what is happening and when people can expect to see their records updated.
If you're considering investing in state pension top-ups, be sure to read our guide to make an informed decision.
Cases of Missing Top-ups Cash:
- David Kirkwood, the former air traffic controller who had £6,217.21 missing from top-ups payments. He experienced delays in tracking both his missing top-ups and a separate tax payment.
- Garry Wakefield, who had a combined top-ups payment of £7,400 and his state pension claim go unprocessed after moving to Spain.
- Elaine Bowden, who still waits for her top-ups payment despite paying over £5,000 last November.
Reach out to us:
Are you in the state pension top-ups backlog? Have you made callback requests to DWP but yet to receive a response or hear from them? If you have paid for top-ups and heard nothing, or are still waiting for a call, share your story by writing to us at [email protected].
[1] - Additional enrichment insight, providing context on the new rules limiting voluntary National Insurance contributions to the previous six tax years, as reported by Gov.uk.
- Some individuals like Garry Wakefield and Elaine Bowden, despite investing their savings into state pension top-ups, have faced prolonged delays in receiving their payments, causing financial concerns and potential losses in interest.
- Insurance and finance experts, such as Steve Webb, argue that the government should make use of technology to simplify the state pension system, reducing delays and providing clarity for people like David Kirkwood who have experienced missing top-ups cash for several months.
- For those facing delays in their state pension top-ups or looking for guidance on investing in the system, education-and-self-development resources, like our guide to state pension top-ups, can be beneficial for making informed decisions and staying updated on general-news about the issue.
