Susan Ryan expressed her frustration at the lack of receipt or acknowledgment after paying £824 for state pension top-ups. Many others who have made significant payments to boost their state pension are facing the same issue and are unable to get answers from HMRC or the Department for Work and Pensions. Opposition politicians have criticized the system, describing it as “utterly shambolic” and highlighting the government’s failure to accurately record pension entitlement as a “failure of basic competence.”
Susan Ryan stated that her hard-earned money seems to have disappeared, and she believes there may be a significant amount of unallocated funds in an HMRC account. She also pointed out the disparity, stating that if pensioners owed money to the taxman, they would be constantly pursued.
Other pensioners who have made payments are experiencing similar difficulties. A retired business owner who paid £4,120 in January has heard nothing despite attempts to follow up, and a former civil servant who paid £4,890 in February was told that it would take six to eight weeks to process her payment.
Buying state pension top-ups can greatly increase retirement income if done correctly. However, the top-ups system faced chaos earlier this year, leading to a rush of savers trying to meet deadlines and causing a backlog in processing payments and updating state pensions.
One of the major issues is that savers do not receive receipts or acknowledgments when making payments, so they are unable to determine if their money is in a queue, misplaced temporarily, or actually lost.
It is essential to seek guidance from the DWP’s Future Pensions Centre before making any payments, as it can be challenging to determine which years will benefit the individual. Some individuals have had positive experiences, with their pension entitlements being updated quickly, but others are still struggling to get vital information from the DWP.
The government has extended the deadline for filling gaps in National Insurance records and increasing state pension entitlement until April 2025. However, many taxpayers are frustrated by the delays in the process and the lack of information provided.
Former Pensions Minister Steve Webb highlights the importance of efficient processing of voluntary contributions, ensuring that records are updated accurately and individuals receive their increased pension payments. Matt Rodda, Labour’s Shadow Pensions Minister, criticizes the government for its failure to accurately record pension entitlements and leaving pensioners in the dark.
Liberal Democrat Spokesperson for Work and Pensions Wendy Chamberlain emphasizes the need for urgent action, including issuing receipts, increasing staff numbers, and establishing an effective information helpline.
The complexities of the UK state pension system and the incorporation of the old system into the new state pension regime contribute to these issues. While there have been efforts to address the backlog, more resources and trained experts are needed to handle the complexities of assessing past changes and dealing with the volume of cases.
The government should communicate the reasons for the delays and actively work towards resolving backlogs. MPs can also support their constituents by explaining the ongoing delays and the efforts being made to address them. The gravity of the situation cannot be understated, with some claimants potentially passing away before they receive their payments. It is clear that HMRC’s claim of an isolated case is not accurate, and urgent action is required to rectify the situation.
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