Fill in National Insurance gaps now to boost your state pension

People with gaps in their National Insurance record can make voluntary contributions to boost the amount they receive in state pension. For many people with gaps, this will be money well spent.

But you only have until 5 April 2025 to plug years going back further than 2018, so you’ll need to act fast. We’ll explain how to find out if it’s worthwhile for you and how to make the extra NI payments.

1. Making extra National Insurance contributions – why is there a deadline?
2. How do I know if I have NI gaps?
3. Should I make voluntary National Insurance contributions?
4. When isn’t it worth paying voluntary NI?
5. Free NI credits – check if you qualify first
6. How to pay voluntary National Insurance
7. How quickly will my NI record be updated?
8. What happens after 5 April 2025?

1. Making extra National Insurance contributions – why is there a deadline?

The amount you receive in state pension is related to the number of years you have paid National Insurance (NI), also described as your ‘qualifying years’. People who have gaps in their NI record have been able to pay voluntarily to cover the missing years when they didn’t pay NI – right back to 2006. But that opportunity is closing soon.

When the new state pension was introduced back in 2016, the number of qualifying years for a full state pension increased from 30 to 35. The government allowed people to make extra payments going back to the 2006/7 tax year, to help people affected by the change to catch up.

Initially, the deadline was April 2023. But, Steve Webb, partner at pension consultants LCP and a former pension minister, says, “a surge in interest in the run-up, and a lack of capacity at HMRC and DWP, meant it had to be extended, initially to July 2023 and finally to April 2025”.

Webb explains: “This means up until 5 April 2025, people can buy NI credits going all the way back to the tax years from 6 April 2006 to 5 April 2018.”

More than 37,000 people have topped up their National Insurance years since last April – and that's just the figure for those using the online service, so the total number who have topped up is even higher. 

2. How do I know if I have NI gaps?

You may have NI gaps for any of these reasons:

• if you were employed but had low earnings
• were unemployed and were not claiming benefits
• were self-employed but did not pay contributions because of small profits
• or were living or working outside the UK.

 Start by checking your NI record.

Then check your state pension forecast. If you haven't retired yet, this will show you how much pension you are due currently, and how much more you could get if you work (or contribute) between now and state pension age. If you're already retired, you'll need to contact the Pension Service on 0800 731 0469 (0800 587 0892 in Northern Ireland) to ask if you could benefit from making backdated contributions.

The maximum standard rate of the new state pension (and the figure the majority of newly retired people get) is £221.20 a week, rising to £230.25 from 6 April 2025.

3. Should I make voluntary National Insurance contributions?

For most people with gaps in their record, paying voluntary national insurance contributions “represents excellent value”, says Webb – with the investment paying for itself in just three or four years of higher state pension payments.

“The current cost of a year of voluntary Class 3 contributions is £17.45 per week, or just over £900 for a year which would otherwise have been totally blank. Those who qualify to pay at the lower Class 2 rate for the self-employed pay even less than this,” he says.

In return for a year of voluntary contributions, someone who would otherwise have been short of the full rate can get an extra 1/35 of the full pension, he points out. For every £907.40 (or less if you’re self-employed) they pay, they could get an extra £328.64 a year in state pension.

“This means that receiving an enhanced state pension for just three years – or four years allowing for basic rate tax – will leave the contributor in profit, and every additional year they draw a pension after this point will be pure profit,” Webb says.

4. When isn’t it worth paying voluntary NI?

There are some exceptions – especially people with a very low life expectancy who may not live to reap the full benefit. Or if you’re on means-tested benefits such as pension credit, a higher pension may result in lower benefits, sometimes on a pound-for-pound basis.

Tom Selby, director of public policy at wealth firm AJ Bell, says if you’ve had work gaps or have spent time abroad not paying NI, voluntary contributions can be a really sensible investment. But, he adds, before making any decision, “it is crucial to check this is the right option, as not everyone will benefit from paying voluntary NI”.

“For example, if you are relatively young and working, you will likely build up the 35 years of NI contributions you need to get the full state pension naturally. Equally, those who have taken time out of work to care for children or elderly relatives may be able to claim NI credits for free,” Selby says.

5. Free NI credits – check if you qualify first

If you’re not forecast to get the full rate of the new state pension, you may be entitled to claim NI ‘credits’ to fill gaps when you weren’t paying NI. Check if you’re entitled to ‘free’ NI credits before you pay voluntary NI contributions.

These credits are available in a wide range of circumstances – as explained on the government website. Some credits are awarded automatically, such as for recipients of child benefit or carers allowance, Selby points out.

But some have to be claimed, such as ‘grandparent’s credits’ (properly known as Specified Adult Childcare credits). Or you can claim for ‘carer’s credits’ if you’ve been doing more than 20 hours a week of looking after a disabled person but not getting Carer’s Allowance.

6. How to pay voluntary National Insurance 

Do it online – if you’re not yet getting your state pension

The government has made it easier for people to check for and then pay for any gaps in their National Insurance record. In many cases, you can do it all online. It doesn’t take long to do, though it might take a little longer if you don’t already have an online account with HMRC.

You can also use the service to view gaps in your NI record and pay voluntary contributions to fill those gaps, if that will mean you’re better off. You can choose which years you want to pay to fill, and pay securely online. You should receive confirmation that your payment has been received and that your NI record will be updated.

To access the state pension forecast service, you need to login to the new digital service using your HMRC personal tax account login details. If you don’t have an online HMRC account, you can register for an account. Webb says: “Using the personal tax account service should mean that you don’t have to wait in a queue for a call handler and you have documentary evidence of the payment.”

Since the launch of the digital service last April, 37,000 people have used it to top up more than 68,000 years, worth £35 million, according to government figures.

If you can’t use the online service

The service is not currently available to those who are already receiving their state pension, or who are self-employed, or currently living outside the UK with gaps incurred while abroad. (If you’re living abroad and want to pay voluntary contributions for years you were resident in the UK, you can use the online service.) 

If you’re not able to access the online service, you'll need to contact the Pension Service on 0800 731 0469 (0800 587 0892 in Northern Ireland) to establish which years are gaps, how much they would cost to fill and which one(s) to fill.

You’ll then need to call HMRC on 0300 200 3500 to get a code number to make sure that any payment is allocated to the correct account.

7. How quickly will my NI record be updated?

Webb warns there can be “considerable delays” between paying the money and it showing up on your NI record. “So it is important to have evidence that the payment has been made,” he says. It’s a good idea to keep a copy of your payment records and also of any receipts or confirmation numbers you’re given.

The most important tip for a smooth process? “Act well in advance of the deadline so any problems can be sorted out in time,” says Webb.

8. What happens after 5 April 2025?

Webb believes it’s “highly unlikely” the deadline to make voluntary NI contributions all the way back to 2006 will be extended again. After this point, voluntary contributions will only be possible for the previous six financial years. That means the chance to fill gaps prior to 2018 will be gone.