UK Autumn Statement - 22nd November 2023

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Kev1964

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Just in the door to see the news that the UK state pension will next year increase by the full expected wage rate of 8.5%. Over a 24 month period that adds up to a collective increase of 18.6%!!

There had been a lot of comment about using a lower figure that would have stripped out bonuses but the Tories have fully honoured the triple lock commitment. Very good news for all those receiving or expecting to receive the UK state pension. Which presumably includes a lot of readers of this section of the forum.

I also saw a headline that class 2 contributions for self employed is being abolished. Anyone paying historical UK national insurance contributions to boost their UK state pension entitlement was paying at either class 2 rates (low level cost) or class 3 (higher cost). These payments are displayed as self employed contributions on one’s NICs record on the HMRC website.

I wonder what this abolition means for future payments in this context. If I find out more I’ll update this.
 
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Had just been reading the same and came here to see if any commentary. Will be interesting to see impact on many here of scrapping class 2. At the very least I guess it emphasises importance of buying as many historic years as you can or need.

I'm expecting now that future years will be at (more expensive) class 3, but let's see what happens.
 
I saw that too but have copied the following from the government website:
  • Those with profits under £6,725 and others who pay Class 2 NICs voluntarily to get access to contributory benefits including the State Pension, will continue to be able to do so. The weekly rate they pay will be frozen at £3.45 for 2024-25, rather than rising by CPI to £3.70.
 
The government website does state that Class 2 will be frozen for the next tax year. It also states "The government will set out next steps on Class 2 reform next year."

The article at the link below states "However, it is not an immediate abolition, because Class 2 will continue to exist for those who wish to make voluntary contributions, at least in the short term.".

It does look like the lower rates payable for voluntary contributions may be coming to an end soon, but not immediately.

Low Incomes Tax Reforms Group Article
 
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