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.”
