I am not really surprised to see this announcement today, especially in light of the difficulty I have had to get a letter from them allowing me to pay a voluntary contribution for this year. Do you think the UK govenrment will honour the payments already made back to 2006? I am really hoping this is the case.
2026 UK Budget Changes
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Brendan Burgess
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It's a smart move by the British government. It was stupid to allow people to benefit so much at the UK's taxpayers' expense.
Any idea how this works exactly? As in, if one has through residency and voluntary contributions already met the 10 years requirement, can you continue to make contributions or is it a requirement to have 10 years residency in order to make future contributions?
At this point we don't know.
My educated guess is if you are already in the system, you can continue to make voluntary NICs albeit at a higher rate than the current Class 2. Even at Class 3, its still a good deal.
For new entrants, the various schemes by which people qualified will be closed up; and you'll be expected to show you have lived / worked in UK for 10 years.
Its not unreasonable to be honest; and after the huge surge to get in before the deadline, not really a major surprise either.
My own thinking (previously) was that they'd close completely to new entrants; but leave the existing folks as they were.
Yes, I believe so.
Agree with your thinking on how the new rules will be applied and totally reasonable move on part of the uk government. Must do the sums again but it's probably still makes sense for me to pay class 3 contributions
It would seem the 10 year rule only applies to new applicants::
https://www.gov.uk/government/publi...x6bu7ULpMyKMQFnbnc_aem_C5zgc9hdr2feMyIL9JcbbQ
https://www.gov.uk/government/publi...x6bu7ULpMyKMQFnbnc_aem_C5zgc9hdr2feMyIL9JcbbQ
of course, they can't change it retrospectively for people already qualified and already paid their voluntary contributions
looptheloop30
Registered User
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Wow thats a sickener when I still have 22 years needed for the full whack. Im sure its still good value if i make it that far but whats to stop them moving the goalposts again?
Nothing.
Having said that, you won't lose out on the years you have already purchased.
I'm similar. Will be 7 years short of the full amount, and 17 years from retirement.
Might make 1 payment at Class 3 in the coming years, and then decide on retirement if it's worth back paying the remaining 6 years, or indeed if my eligility to do so hasn't changed.
looptheloop30
Registered User
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My reading is that I'll still get one more payment at class 2, and the rest class 3? Have to get the calculator out and see whats feasible long run. It still makes financial sense to pay it but maybe not practical sense. Currently aiming to continue paying it as long as circumstances allow. Even if i make enough payments to get to 75% off it would be huge in the long run for me
My wife has one year left so the timing is perfect for her. I have two left to pay so 1 year at Class 3 is going to cost me c£800 more than forecast but I still feel quite lucky to have availed of the way this buy back system was structured. For people with more years to pay for it's a bigger impact and will likely dissuade some from making further contributions despite the obvious payback.
Having read some of the UK news articles on this "loophole" over the years and the readers' comments that followed... the change should somewhat satisfy a certain demographic of the UK electorate.
Having read some of the UK news articles on this "loophole" over the years and the readers' comments that followed... the change should somewhat satisfy a certain demographic of the UK electorate.