Autumn Budget 2025 Update: Changes to UK National Insurance Contributions for UK Expatriates

06 January, 2026

Whilst the UK press continued to speculate heavily about potential changes to the UK pensions’ landscape in the Autumn Budget 2025, such changes did not thankfully materialize. However, one unexpected change was announced regarding UK expatriates’ ability to continue to make UK National Insurance (NI) contributions while abroad.

Starting in the 2026-27 UK tax year, UK expatriates will no longer be able to pay voluntary Class 2 NI contributions for periods spent abroad. Only voluntary Class 3 contributions will be available.

This change results in a significant increase to the annual cost for UK expatriates wishing to make UK NI contributions whilst living or working abroad. For the 2025-26 tax year, Class 2 contributions cost £182 annually, whereas Class 3 contributions cost approximately £920 per year — nearly five times more expensive for the same State Pension benefit.

 According to HMRC, these changes are being made to ensure that individuals building a State Pension from outside of the UK have a sufficient link to the UK and are paying a fairer price. 

New Eligibility Requirements

From April 2026, individuals wishing to make voluntary Class 3 contributions from abroad must satisfy one of the following conditions:

• Have lived in the UK for a continuous period of 10 years, or
• Have paid at least 10 years of National Insurance contributions while resident in the UK.

These requirements represent a tightening of eligibility criteria and are designed to ensure individuals have a sufficient connection to the UK before building up UK State Pension entitlement from abroad.

Prior to this announcement, individuals living abroad and/or working abroad could pay voluntary Class 2 or voluntary Class 3 National Insurance contributions if they had either:

• Previously lived in the UK for 3 years in a row, or
• Paid at least three years of National Insurance contributions.

Important Protections

The new changes do not affect voluntary contributions made for periods abroad before 6 April 2026. UK expatriates can continue to pay for historical years under the previous rules and rates.

If you are currently making Class 2 Contributions:

• HMRC will contact affected individuals from July 2026.
• Final Class 2 payments for the 2025-26 tax year will be collected on 10 July 2026 for those paying by Direct Debit.
• It is recommended that contributors should not cancel Direct Debit arrangements prematurely.

If you are currently making Class 3 contributions, there is no need to reapply to continue to make payments.

Application Process

Applications for voluntary Class 3 contributions from abroad can continue to be made using Form CF83.

What Steps Can Be Taken Now?

HMRC has noted that further detailed guidance and transitional arrangements will be published at a later date. However, at this time, it is well worth reviewing your UK NI record to identify any gaps before April 2026. Where eligible, you can pay voluntary contributions to fill any NI gaps going back 6 years. The deadline is 5 April each year.

 It is also important to assess whether you will meet the new 10-year residence or contribution requirement being introduced.