New figures published by the UK Government show that at the end of March 2023, the number of people making voluntary National Insurance (NI) contributions to top-up their State Pension has surged by 85 per cent over the last year. The National Insurance Fund Accounts indicate that £391,973,000 worth of Class 3 NI contributions were made for the year ending March 31, compared to £212,311,000 paid in the previous year.

However, the Department for Work and Pensions (DWP) is urging people thinking about buying incomplete or missing years to contact the Future Pension Centre first, before spending any money, to ensure that they will actually benefit from the expenditure.

The advice came on Monday during the DWP oral questions session in Parliament after Lib Dem MP Sarah Dyke said that in “numerous instances” people have topped up their State Pension but not seen an increase in their payments, or been given a reason why.

Ms Dyke told MPs: “Many people took the decision to pay for pension top-ups in 2020 and 2021, but in numerous instances this has not led to any increase in their State Pension; nor have they received any explanation or a refund.

“Has the Department made an assessment of the average delay in people receiving their pension top-ups?”

In response, the recently appointed Pensions Minister at the DWP, Paul Maynard MP, said: “The advice to anyone seeking to top up their pension or buy extra National Insurance credits would be to ring the Future Pension Centre (0800 731 0175) in advance of making any payments, to determine whether they would actually enhance their pension by making them.

Class 3 contributions are voluntary contributions that can be used to fill gaps in NI records which in turn boost State Pension payments in retirement, ensuring someone receives full entitlement. The latest figures from the DWP show there are now 12.6 million people receiving State Pension payments, including 1.1 million living abroad and 992,052 in Scotland.

Of that overall total, some 9.7 million people are receiving Basic State Pension payments of up to £156.20 each week, while 2.9 million are on the New State Pension, which is worth up to £203.85 each week.

You can usually fill gaps in your NI record going back six tax years, however, there is currently an opportunity for some people to fill gaps going back to 2006. The deadline for making these extra top ups was extended to April 2025 after a surge in interest overwhelmed DWP helplines earlier this year.

Buying National Insurance credits to top up State Pension

If you can spare the cash, you can plug gaps in your NI record by buying voluntary class 3 NI contributions. Buying a full extra year costs around £900 though partial years will be cheaper.

Each year bought you get 1/35th of a year’s State Pension – around £300. This means you effectively earn your money back in around three years so it can prove very good value.

It is crucial to check that it is worth your while paying for these credits before paying any money, so as the Pensions Minister advises, always check with the DWP before doing so.

Contact the Future Pension Centre on 0800 731 0175 to double check how many years you can buy and whether voluntary contributions will add to your State Pension. Those who have already reached retirement age must contact the Pension Service on 0800 731 0469. Find out more about plugging gaps in your National Insurance record on GOV.UK.

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