State Pension Top-Up Funds Vanish Into Government Coffers for Over a Year
A woman's £814 payment for her state pension top-up was lost for more than a year, highlighting systemic issues between HMRC and the DWP.
A 57-year-old woman received an apology from the Government after her state pension top-up payment of £814 vanished for over a year within the system. Sharon Partridge had confirmed with staff that her payment would boost her eventual state pension before transferring the money in summer 2025.
HMRC has since admitted it provided incorrect information about her National Insurance record and an inaccurate reference number for the purchase. The department first contacted Mrs. Partridge, a part-time cleaner, last spring, seeking more information about the payment as it still had not been allocated.
She and her husband, Jolyon, were reportedly bounced between HMRC and the Department for Work and Pensions (DWP) staff during multiple phone calls, making no progress in tracing the funds until intervention was sought. This publication has received numerous complaints from readers regarding the DWP and HMRC, who jointly manage the top-up system. These complaints often involve individuals being redirected between departments or facing blame-shifting for unresolved issues.
State pension top-ups allow individuals with incomplete state pension records to make voluntary National Insurance contributions to increase their future payouts. A full state pension requires 35 qualifying years, currently valued at £12,500 annually, set to rise to £13,000 next April. This publication has actively campaigned for improvements to the state pension top-up system, after hearing from many readers distressed by missing funds.
The Partridges experienced prolonged delays after receiving a letter from HMRC in May, indicating their payment had not been processed. According to Mr. Partridge, HMRC directed them to the DWP to instruct HMRC on how to proceed with the payment, a process that yielded no results. Similarly, the DWP, after checking their records, could not confirm the allocation of the funds. The DWP stated they had instructed a caseworker at HMRC to process the payment, but acknowledged delays due to staff workload.
Mrs. Partridge expressed frustration that her money was held for nearly a year before she was contacted for clarification. Upon investigation, HMRC discovered an overpayment of £384. A spokesperson for HMRC stated, "We apologise to Mrs. Partridge. We have now corrected the allocation of her contributions and written to confirm that she will receive a refund."
This situation comes amid a backdrop of similar issues reported by readers, particularly following a surge in demand for state pension top-ups ahead of a deadline to fill older National Insurance gaps. A temporary arrangement allowing the purchase of top-ups dating back to 2006-07 expired in April 2025. Currently, contributions can only be backdated by six years.
One reader, Peter Brookes, reported issues with the DWP's 'callback' system, designed to allow people to register for top-up purchases after the deadline. Mr. Brookes, who sought to purchase 15 years of contributions, registered for a callback four times without receiving a call. The DWP stated that two unsuccessful call attempts were made to his number. The department did not respond to inquiries regarding whether missed calls would invalidate the right to purchase older years of contributions or if screenshots of callback requests would serve as sufficient evidence.