Pensioners may have to wait up to eight months for DWP payment increase

Pensioners are facing a lengthy wait of up to eight months for their state pension payments to increase, even after filling in their National Insurance records. The rush to buy state pension top-ups before this year's deadline has caused a significant backlog, with processing times now stretching between six to eight months. The final opportunity to boost state pension payments through voluntary National Insurance contributions came to an end this year.

To qualify for the full new state pension under current regulations, one needs 35 years of National Insurance contributions, and at least 10 years to receive any pension. Gaps in one's National Insurance record can lead to lower pension payouts than expected, but voluntary contributions can be made to bridge these gaps.

Until April 5, it was possible to purchase additional National Insurance years dating back to 2006; however, the limit has now been reduced to the last six tax years.

This Is Money discussed the issue with Sharon Gray, a retired civil servant from Herefordshire, who told the Mirror she paid £6,000 in March to complete her record.

Upon contacting HMRC and the DWP regarding when her state pension would reflect the top-up, she was informed by a staff member that the current waiting period for payment processing is six to eight months.

Sharon shared her experience with This is Money, quoting the employee: "We are just working our way through them and there is nothing you can do. You have to wait."

Reflecting the dismay of retirees like herself caught up in protracted waits for their state pension increments, a pensioner aired her grievances.

Confronting these assertions, the Department for Work and Pensions (DWP) issued a counterstatement through a spokesperson stating: "We do not recognise these claims and we are prioritising 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."

Further investigative pieces by This is Money carried accounts of two more pensioners grappling with similar hindrances in obtaining their state pension boosts. A prospective retiree who diligently filled their National Insurance gaps as far back as November last year yet remains bedeviled by archaic records even midway through the ensuing year.

A separate narrative speaks of a 66-year-old expatriate in France, who since January has been awaiting for their up-to-date entries to mirror in augmented payouts.

However, it's crucial for those above 66 years to realise that any cumulative arrears dating from the time of their augmented payment will be eventually settled in totality, guaranteeing no lasting detriment despite the interim delay.

Addressing the sluggishness in updating pensions, ex-Pensions Minister Steve Webb said: "For those who are 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."

Additionally, he admonished the government for inadequate preparation, remarking: "The Government must have known that there would be a surge of payments in the weeks and months leading up to the final deadline and should have put in place extra capacity to keep processing times down."

Now serving as a partner and pension consultant at LCP, Webb continued: "As things stand, people are losing out on the interest on hundreds or thousands of pounds in contributions and simply have to sit and wait until their case gets to the top of the queue."