State pensioners who experienced prolonged delays in receiving their pension top-ups are now being compensated with lump sum payments. The Department for Work and Pensions (DWP) recently acknowledged to Sandra Poynter, a 69-year-old expatriate living in Cyprus, that her £8,500 state pension top-up had been misplaced for several months.
Ms. Poynter was informed of the issue by a DWP representative in January. Personal finance experts warn that many other state pensioners might be affected by similar delays. This concern follows a surge in complaints reported to This is Money, highlighting numerous cases of missing top-up payments.
These issues emerged amid a rush to meet a deadline for filling historical gaps in National Insurance records. A temporary scheme allowing retirees to purchase voluntary state pension top-ups dating back to 2006/07 is set to expire in 2025.
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Ms. Poynter recounted her frustrating experience: “I paid my National Insurance top-up last July, but after months of waiting and multiple calls to the DWP, I learned my payment had been lost. Despite an email in January 2026 indicating an investigation was underway, I still had no updates. Calls to the DWP only resulted in being told to wait without clear information.”
The situation has since been rectified. Ms. Poynter received a backpayment of nearly £3,200, an additional £100 as compensation for the delay, and an increase to her state pension amounting to £207 per week.
The Labour Party government extended a formal apology to Ms. Poynter, confirming the payment and her revised pension entitlement. They assured that arrears payments are being processed promptly, with payouts expected within three to five working days.
Former Pensions Minister Steve Webb, now a partner at consulting firm LCP, expressed concern: “It is shocking that someone can be left in the dark for nine months after paying thousands to boost their pension. For those living abroad, pursuing such matters is especially challenging. Many others may still be awaiting their top-ups.”
Webb emphasized the need for streamlined processes, stating, “It would be far more efficient if a single individual managed the entire contribution and pension entitlement update, rather than cases bouncing between departments and delaying resolution.”