Reason for six-year time limit

The Chancellor of the Exchequer was asked why there is a six-year limit for contributions to National Insurance shortfalls in relation to the state pension.

Stephen Timms explained that the NI system operates on a pay-as-you-go basis with the contributions that people pay now funding contributory benefits currently in payment and helping to fund the NHS.

The time limits were intended to prevent contributors from delaying payment of their contributions until they come to make their claims for benefit or pension entitlement.

The Government has no plans to change them having recently in the Pensions Act 2008 given people who reach state pension age between 6 April 2008 and 5 April 2015 and already have 20 qualifying years the opportunity to pay up to an additional six years of Class 3 contributions outside the most recent six tax years.

He added that if the limits were...