2026 UK Budget Changes

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Reeves has announced changes for those living abroad and the buying of pension years.
"Tax payers money should not be spent on those living abroad..."

Need to see bill for details, but she has said that they will abolish access to class 2 contributions for those living abroad.
They they will have to live for 10 years in the UK to be eligible.
 
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26 November 2025 at 13:21

Class 2 National Insurance contributions abolished for people living abroad​

The government will abolish access to class 2 National Insurance contributions for people living abroad.

“Taxpayers should not pay for pensioners who live abroad,” she said.
Click to expand...
Not to mention this reliable source... :D
www.gbnews.com

State pension overhaul from Rachel Reeves as thousands to lose access to full payments in Budget shock

The Chancellor has announced changes to state pension eligibility for people 'living abroad'
www.gbnews.com www.gbnews.com
 
I think we need to wait for the offical detail to be published rather than headline

I can't post a link, but there's a post on x by /MartinSLewis/status/1993669248783471061

His post says: "I will abolish access to class 2 National insurance contributions to people living abroad."

edit to add...just found this
on gov uk site

government/publications/budget-2025-document/budget-2025-html#policy-decisions

The government is closing loopholes in current Voluntary National Insurance contributions (VNICs) rules that allow those with a limited connection to the UK to build UK State Pension entitlement at a cheaper rate whilst overseas. To fix the most unfair elements of these rules, the government is removing access to the cheapest Class 2 VNICs for individuals abroad and increasing the initial residency or contributions requirement for VNICs to 10 years. The government is also launching a wider review of VNICs, with a call for evidence to be published in the new year.
 
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Again - nothing currently in the actual statement.

UPDATE

Budget speech is now published in full online:

The government is closing loopholes in current Voluntary National Insurance contributions (VNICs) rules that allow those with a limited connection to the UK to build UK State Pension entitlement at a cheaper rate whilst overseas. To fix the most unfair elements of these rules, the government is removing access to the cheapest Class 2 VNICs for individuals abroad and increasing the initial residency or contributions requirement for VNICs to 10 years. The government is also launching a wider review of VNICs, with a call for evidence to be published in the new year.
Click to expand...

Not much detail there.

Though I wouldn't be surprised if they close the door to new entrants.

Every other post on that "Moneyweek" site has an author credit. But the item on Voluntary NICs doesn't.

Curiouser & curiouser.
 
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lfc84lfc84 said:
I can't post a link
Click to expand...

Key Post - New users must wait one hour between posts and cannot put links in posts

Spammers flood askaboutmoney with posts with links To prevent that we have some limits on new users 1) They must wait an hour between posts. 2) They cannot put links in posts These restrictions are lifted, when you become an established poster. An established poster must have at least 10...
www.askaboutmoney.com
lfc84lfc84 said:
but there's a post on x by /MartinSLewis/status/1993669248783471061
Click to expand...
lfc84lfc84 said:
edit to add...just found this
on gov uk site

government/publications/budget-2025-document/budget-2025-html#policy-decisions
Click to expand...
www.gov.uk

Budget 2025 (HTML)

www.gov.uk www.gov.uk
 
Wonder what the effective dates are? Like, I have paid a fair few Class 2s up to date, I presume this change does not have retrospective effect?
 
She just referenced it live on Sky News about three minutes ago. I can't remember her wording but it made me look up from what I was doing and then go straight to AAM for info! :-)

Here's one link...seems pretty clear that the Labour government has been reading this forum!

investment-international.com

UK Budget: Government to remove access to class 2 VNICs for expats

It will also extend the initial residency or contributions requirement to 10 years
investment-international.com investment-international.com

Edit: A more official announcement here. It looks like tax year 2025/2026 is the last one that can be paid at class 2 rates and that it doesn't apply to tax years before this. So hopefully one's current record stands.

www.gov.uk

Voluntary National Insurance

National Insurance contributions you can choose to pay when you have a gap in your National Insurance record.
www.gov.uk www.gov.uk
 
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Just paid 2024/25 Class 2 NICs, The legislation will be from 2026/27 tax year so presumably will get Class 2 NICs for 2025/26 @ £3.50 a week and then will have to switch to Class 3 NICs for 26/27
 
I am happy enough I got as many Class 2 years as I could before this change. We just have to be thankful for what we have got and sanguine about the future years we will not get at Class 2!

I think on balance the rules were ridiculously generous and the elimination of Class 2 has been spoken about for the last 8 - 9 years. Ok, they are not eliminating Class 2 but merely restricting access to it. At least the HMRC site is clear, there is no retrospective impact on previous years paid for.
 
Saw this on a website today, following the Uk budget. I guess we can still make Class 3 level contributions if we wish?

"The government has announced it will be removing access to class 2 voluntarily national insurance contributions (VNICs) for expats to prevent them from claiming the UK state pension cheaply.

The change will come into effect from 6 April next year, alongside an extension to the initial residency or contributions requirement to 10 years. The government said the move would “put an end to those living abroad being able to buy cheap access to a UK state pension.”

Expats can currently claim UK state pension by paying class 2 VNICs to fill in gaps in their record. You must generally have been employed or self-employed in the UK before leaving and have lived in the UK for at least 3 years to qualify.


But from next April, UK nationals living abroad will generally only be able to pay the more expensive class 3 VNICs to build their state pension record, and only if they meet the new 10-year initial residency/contributions requirement.


In its Budget documents, the government said: “From 6 April 2026, the government will remove access to pay voluntary Class 2 NICs abroad and increase the initial residency or contributions requirement to pay voluntary NICs outside of the UK to 10 years.

“These changes will be made via secondary legislation laid before parliament ahead of April 2026. The government will also launch a wider review of voluntary NICs with a call for evidence in the new year.”"
 
I guess this will possibly start another rush to get in before the change next April, from anyone who hasn't yet started the process.
 
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