Britons are being urged to check their National Insurance records for gaps as new shocking figures from the DWP show some people are receiving just £10 worth of state pension a week.
Generally, to get the full new state pension people need to have 35 years of National Insurance contributions (NICs).
These years can be accumulated through employment, self-employment, or by claiming certain benefits such as Jobseeker’s Allowance, Carer’s Allowance, or Child Benefit.
However, some people may have gaps in their NI records due to various reasons, such as periods of low earnings, unemployment without claiming benefits, or time spent working abroad.
These gaps result in fewer “qualifying” years and subsequently, the person would receive a proportionately smaller state pension.
This is reportedly true for thousands, as a new analysis from the Royal London of Department for Work and Pensions (DWP) data shows only around half of people receiving the new state pension last year were getting the full weekly amount – and around 150,000 were on less than £100 per week.
Meanwhile, a worrying 17,546 pensioners were receiving less than £20 a week, and 5,677 people were receiving less than £10 a week.
The full new state pension for 2024/25 is worth £221.20 a week, up from £203.85 last year.
Those who find they have caps can make voluntary contributions to increase their weekly state pension amount. With new figures showing a growing number of pensioners receiving less than the full amount, taking action to ensure a complete National Insurance record is more important than ever.
Sarah Pennells, consumer finance specialist at Royal London, said: “We often talk about the full state pension amount, but these figures show how many pensioners are getting only a fraction of that.
“One of the main reasons why people miss out on the full state pension is because they have gaps in their national insurance record, but they may not realise this until it’s too late to do anything about it.
“You may have National Insurance gaps because, for example, you were working but had low earnings, were unemployed but didn’t claim benefits, were a high earner with young children who didn’t register for child benefit, or because you were working abroad.”
However, Ms Pennells noted: “The good news is that, even if you have gaps in your National Insurance record going back over a decade or more, it may still be possible to top up your National Insurance contributions and increase the amount of state pension you’re entitled to.
“Under the new state pension system, you don’t get any state pension at all if you have fewer than 10 years’ National Insurance, so it’s important to check your National Insurance contribution record.”
Ms Pennells added: “You may be entitled to free national insurance credits if you’re caring for a child under the age of 12 by registering for child benefit, or if you’re caring for someone else who’s getting certain benefits.
“In that case, you may be able to top up your National Insurance record for free.
“But for those who can’t, it’s important not to miss this deadline of April 5, 2025. That’s the date by which you must have paid Voluntary National Insurance Contributions to make up for gaps between tax years April 2006 and April 2018. After that, you’ll only be able to go back six years and fill in any gaps.”
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, commented: “The state pension forms the backbone of people’s retirement income so it is vital that you make sure you are receiving the right amount.
“Getting a state pension forecast will enable you to see where there are gaps in your National Insurance record so you can make a plan on how to fill them.”
HM Revenue and Customs (HMRC) and the Department for Work and Pensions (DWP) offer an online state pension forecast service for people to calculate if they’ll benefit from making voluntary contributions.
