Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the potential financial impact on overseas residents of the removal of Class 2 National Insurance Contributions in relation to their UK state pension entitlement.

The previous rules around voluntary National Insurance Contributions (NICs) allow those with a limited connection to the UK to build UK State Pension entitlement at a very cheap rate.

At Budget 2025 the Government took two immediate steps to fix the most unfair elements of these rules. From April 2026 we are removing most access to Class 2 voluntary NICs for periods abroad. This will prevent thousands of people who are not in the UK from building entitlement to a UK State Pension far more cheaply than working people here. Secondly, we are strengthening the link a person needs to have to the UK before they can build their National Insurance record abroad. A person will now need to have spent 10 years living or building their NI record in the UK, up from three years.

A Tax Information and Impact Note for these changes will be published alongside the introduction of legislation.