National Insurance credits are a way of protecting your NI record when you are unable to work (Image: Getty)
Brits are being urged to do a review of their record to make sure their credits are up to date.
The message from former pensions minister Steve Webb, was given to a concerned person who found out that their NI record was not updated while they were claiming Universal Credit.
He told the reader that someone claiming Universal Credit should have been building up their National Insurance credits and that everyone reading this could benefit from a ‘spring clean’ review of their NI record to make sure it is accurate.
Mr Webb went on to say that an incorrect NI record can damage your future entitlement and cost you thousands of pounds.
National Insurance credits are a way of protecting your NI record when you are unable to work due to ill health, unemployment or caring responsibilities.
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He told one reader their NI record had not updated when they moved from Incapacity Benefit to Employment Support Allowance.
The error has now been corrected but other Brits in the same situation are being urged to check their NI records to correct any issues.
Working Brits also have just over four weeks until a crucial deadline to top up NI credits which count towards their .
British workers have until April 5, 2025, to make a backdated claim for National Insurance credits, which could boost their by thousands of pounds.
The Department of Work and Pensions () only allows people to backdate gaps for the past six years, but it allows workers to claim back any lost NI credits, as they are called, from April 2006 to April 2018.
Buying back credits means you can increase the amount of you receive.
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When the ‘new’ was introduced in 2016, the removed the six-year rule back to 2006. This deadline has been extended three times since the announcement due to demand, but the final deadline is 5 April 2025.
How the NI state pension top up works
The current full is £221.20 a week. However, to get that full amount, you will need to have 35 qualifying years of NI contributions.
Workers who have taken time off from employment, such as to raise a family or care for older relatives, may have gaps in their NI contribution history.
How much does it cost?
Making up for one year of missed NI contributions will cost you up to £907.40, which will add £302.64 per year or £5.82 per week) to your pre-tax . However, the rate you pay depends on which year you’re topping up.
If you don’t top up your you’ll get an amount which reflects the number of years you have full NI contributions for.
If you have 30 years of NI contributions, then you’d get 86% of the full £190.23 per week (2024/25).
You can top up your NI in two ways via the Gov.uk website:
- making voluntary Class 2 National Insurance contributions; or
- making voluntary Class 3 National Insurance contributions.
You can’t pay to increase your beyond the maximum of £221.20 per week (2024/25).
When not to top up your State Pension
Certain benefits automatically come with NI credits, so you may find no gaps in your NI contribution record even though you weren’t working. If you received these benefits, you may not need to top up your . Examples include:
- if you were on Child Benefit;
- if you were a grandparent looking after children,
- if you were on maternity, paternity or adoption pay;
- if you were on statutory sick pay or
- if you were unemployed and actively looking for work.
If you were ‘contracted out’ of the before the changes took effect in 2016, then you’ll need to check on Gov.uk whether topping up can help.