Class 2 voluntary NI ending
Class 2 was the £3.65/wk route. Class 3 is the £17.75/wk route. The gap matters most to expats and the self-employed.
What is changing
The government announced the abolition of Class 2 NICs for the self-employed at Autumn Statement 2023, with the change rolling through subsequent tax years. Class 2 voluntary contributions for the self-employed remain in force during the transition but the route is narrowing1. Expat voluntary Class 2 (for those working abroad and previously self-employed in the UK) is the cohort most affected.
Why the difference matters
Class 2 cost £3.65/wk (£189.80/year), Class 3 costs £17.75/wk (£923.00/year)2. For someone closing a 10-year gap, that is roughly £1,900 versus £9,230 for the same uplift in State Pension. Cohorts losing eligibility for Class 2 face a sharp increase in the cost of the same outcome.
What to do
- If self-employed and considering voluntary contributions for past years, request a Class 2 eligibility check from HMRC before relying on Class 3 pricing
- If working abroad, confirm Class 2 eligibility for the relevant tax years with HMRC residency unit
- Call the Future Pension Centre to model whether the years would actually lift your forecast (some years do not, due to COPE or post-2016 ceilings)
Adjacent
By Oliver Wakefield-Smith, Founder, Digital Signet.
Rates current for 2026/27 · Verified Q2 2026 · Next refresh after Autumn Budget 2026