Did anyone else noticed this statement from Rachel in her recent budget?

 

"UK Chancellor Rachel Reeves revealed in her Budget on Wednesday that from April 2026 people would now need to live in the UK for 10 years to meet the threshold for a full pension and when living outside the UK pay Class 3 contributions rather than Class 2"

 

In other words, no longer will it be possible to pay NI at class 2 (about 182 pounds/year) rates, but must pay at class 3 (910 pounds/year).

 

BBC link:

 

https://www.bbc.com/news/articles/c5y9dgk2pzpo

 

Luckily for me, I was able to pay my voluntary NI top-ups at class 2, and now draw my UK state pension.  But not good news for those expats who are not yet at retirement age.

I lived in the UK for 52 years, before moving here 8 year's ago, I'm have 35 years full national insurance contribution.

When I'm due to clam my state pension in 7 years time, regardless if I would have lived here for the pasted 16 years, I would still be entitled to my full new state pension 

7 minutes ago, dayo202 said:

I lived in the UK for 52 years, before moving here 8 year's ago, I'm have 35 years full national insurance contribution.

When I'm due to clam my state pension in 7 years time, regardless if I would have lived here for the pasted 16 years, I would still be entitled to my full new state pension 

Indeed, I lived in LOS for 8 years before I claimed my pension.....🤗

28 minutes ago, simon43 said:

Luckily for me, I was able to pay my voluntary NI top-ups at class 2,

That was a very good deal, only available for people working abroad during the "missing" years.

 

I was living abroad but not working, and had to pay for my 3 "missing" years at the class 3 rate. Still a good investment though. 

 

 

4 hours ago, chickenslegs said:

That was a very good deal, only available for people working abroad during the "missing" years.

 

I was living abroad but not working, and had to pay for my 3 "missing" years at the class 3 rate. Still a good investment though. 

 

 

 

It was an excellent deal.  I think i paid a grand total of £1200 ish pounds to fill gaps of 8 or 9 years a few years back, and as a result have just got a full swathe of NI years to qualify for the full new state pension in 2031.  A nice little kicker to the retirement funding.

Paying Class 2 contributions was an excellent deal and one that I took full advantage of when working abroad.

 

However, there was no justification for it and it was a loophole that needed closing.

42 minutes ago, RayC said:

Paying Class 2 contributions was an excellent deal and one that I took full advantage of when working abroad.

 

However, there was no justification for it and it was a loophole that needed closing.

Isn't the justification that you would not have access to the othe NI benefits, such as health care, etc.? Not that I am complaining.

 

A few years ago I back paid for 17 years using Class 2 contributions (I thought I would qualify for 6 or 7 at the most). Then I started making annual payments, and 25/26 will be my last at Class 2. Thereafter, 3 full years at Class 3 and about 8 months for my last year. Won't qualify for a full pension but still worth it for me at 184 quid a week (based on the current forecast, which may be subject to a small increase). Wish I'd learned about it a long time ago, but foolishly thought I wouldn't qualify as I left the UK when I was 19. One of the posters on here set me straight (you know who you are😉), for which I'll be eternally grateful.       

The state pension for expats remains an excellent deal.  Just wish the even better 'triple lock' applied to Thailand!

14 minutes ago, brewsterbudgen said:

The state pension for expats remains an excellent deal.  Just wish the even better 'triple lock' applied to Thailand!

I don't care about the triple lock pension, though it would be nice.

 

I would be happy if they just unfroze my state pension.

35 minutes ago, billd766 said:

I don't care about the triple lock pension, though it would be nice.

 

I would be happy if they just unfroze my state pension.

 

But wouldn't unfreezing the State Pension mean this then being paid at the current triple-lock rate in any event?

 

There is zero chance of U.K. pensions being unlocked.  It’s been campaigned for for decades and successive governments ignore it, largely because the beneficiaries are so far away. Few people in the U.K. would lobby on behalf of a group they see as sunning themselves in tropical climes.  
 

 

4 hours ago, GarryP said:

Isn't the justification that you would not have access to the othe NI benefits, such as health care, etc.? Not that I am complaining.

 

A few years ago I back paid for 17 years using Class 2 contributions (I thought I would qualify for 6 or 7 at the most). Then I started making annual payments, and 25/26 will be my last at Class 2. Thereafter, 3 full years at Class 3 and about 8 months for my last year. Won't qualify for a full pension but still worth it for me at 184 quid a week (based on the current forecast, which may be subject to a small increase). Wish I'd learned about it a long time ago, but foolishly thought I wouldn't qualify as I left the UK when I was 19. One of the posters on here set me straight (you know who you are😉), for which I'll be eternally grateful.       

 

I'm pleased that you managed to take some advantage of the previous regulation.

 

The fact that someone does not have access to other UK welfare benefits whilst working abroad is no justification. Imo if someone is no longer resident - irrespective of whether they are a national - they should no longer be entitled to the welfare benefits of that country. The other side of the coin is that I believe that the individual should have the same access to welfare benefits as locally-born workers in their new country of residence.

 

Wrt pensions specifically, I don't know of any other country where you can continue to pay towards the state pension when no longer resident, especially at what was essentially a reduced rate.

15 minutes ago, RayC said:

 

I'm pleased that you managed to take some advantage of the previous regulation.

 

The fact that someone does not have access to other UK welfare benefits whilst working abroad is no justification. Imo if someone is no longer resident - irrespective of whether they are a national - they should no longer be entitled to the welfare benefits of that country. The other side of the coin is that I believe that the individual should have the same access to welfare benefits as locally-born workers in their new country of residence.

 

Wrt pensions specifically, I don't know of any other country where you can continue to pay towards the state pension when no longer resident, especially at what was essentially a reduced rate.

 

It is overly generous, I grant you, and that’s why there hasn’t been much of a reaction to it here in the U.K.   

 

As for your last point, I believe EU countries allow it, providing the person remains in another EU member state.  
 

 

4 hours ago, OJAS said:

 

But wouldn't unfreezing the State Pension mean this then being paid at the current triple-lock rate in any event?

 

Well my state pension was frozen at the rate that I first got it, 16 years ago, so ant increase would be welcomed by me and about 650,xxx pensioners worldwide. To get the triple lock and the current pension rate would be a bonus.

 

It is NOT a law that some pensions are frozen.

 

AI Overview
The UK's policy of "frozen" state pensions has been a long-standing issue, which was notably challenged in the European Court of Human Rights (ECtHR) during the period when Tony Blair was in office and shortly after he left. The core of the issue is that UK state pensions are not uprated annually for pensioners living in certain countries (mostly Commonwealth nations like Canada and Australia), unlike those in the UK, the EU, or countries with specific reciprocal agreements. 
Tony Blair and the Frozen Pensions Policy
The "frozen pensions" policy is a long-standing one, supported by successive UK governments for over 70 years, including those led by Tony Blair. During his tenure as Prime Minister (1997-2007), his Labour government maintained the existing policy and resisted calls to uprate pensions universally for all overseas residents. The government's stance was that the primary purpose of the UK social security system was to provide a basic standard of living for inhabitants of the UK, and that the uprating issue was a matter of macroeconomic policy and political choice, not a legal obligation. 
Legal Challenges and the ECHR
The policy was the subject of a major legal challenge, R (Carson) v Secretary of State for Work and Pensions, initiated in UK courts in 2002 and eventually taken to the European Court of Human Rights. Annette Carson, a UK pensioner living in South Africa, argued that the policy was discriminatory. 
The legal process unfolded as follows:
UK Courts: Ms. Carson's case failed in the English High Court (2002), the Court of Appeal (2003), and the House of Lords (2005). The UK courts ruled that the issue was political, not judicial, and that pensioners living in "frozen" countries were not in a comparably similar situation to those in the UK or in countries with reciprocal agreements.
ECtHR Chamber: The case was then taken to the ECtHR. A chamber judgment in November 2008 initially found no violation of the European Convention on Human Rights (ECHR).
ECtHR Grand Chamber: The applicants, including Ms. Carson and others, requested their case be referred to the Grand Chamber of the ECtHR in January 2009. The Grand Chamber accepted the request and delivered its final judgment on March 16, 2010. The court held, by a majority of 11 to 6, that there had been no violation of Article 14 (prohibition of discrimination) read in conjunction with Article 1 of Protocol No. 1 (protection of property) of the ECHR. 
The ECtHR decision affirmed the UK government's position that the differing economic conditions and social security provisions in various countries provided a rational basis for the different treatment. The judgment essentially left the decision to change the policy firmly with UK politicians. 
 

Thank you very much to the Labour party and to the Conservative party during the 14 years that they were in power for NOT telling the ECHR to FO.

 

In particular, thank you to Tony Blair for being spineless with a big yellow stripe down his back for exaserating (sp) the problem.

 

Do think that Rachel from accounts, or spineless Starmer will restore parity in pensions?

56 minutes ago, RayC said:

 

I'm pleased that you managed to take some advantage of the previous regulation.

 

The fact that someone does not have access to other UK welfare benefits whilst working abroad is no justification. Imo if someone is no longer resident - irrespective of whether they are a national - they should no longer be entitled to the welfare benefits of that country. The other side of the coin is that I believe that the individual should have the same access to welfare benefits as locally-born workers in their new country of residence.

 

Wrt pensions specifically, I don't know of any other country where you can continue to pay towards the state pension when no longer resident, especially at what was essentially a reduced rate.

Many UK people who worked abroad also paid NI contributions for 44 years and didn't get the over payments returned either.

 

Contractors working abroad were NOT allowed to pay the full rate of NI either. They were forced into class 2 or 3 contributions. Why should they be penalised?

35 minutes ago, billd766 said:

Many UK people who worked abroad also paid NI contributions for 44 years and didn't get the over payments returned either.

 

Contractors working abroad were NOT allowed to pay the full rate of NI either. They were forced into class 2 or 3 contributions. Why should they be penalised?

 

I'm not talking about penalising people. I paid the lower voluntary NI contributions under the old rules, and I believe that the UK government has a moral - and quite possibly legal - duty to honour their commitment to me (i.e. in my case, that means paying me the maximum pension). 

 

However, why shouldn't the government close this loophole? They are under no obligation to keep tax laws as they are.

1 hour ago, Larkin said:

 

It is overly generous, I grant you, and that’s why there hasn’t been much of a reaction to it here in the U.K.   

 

As for your last point, I believe EU countries allow it, providing the person remains in another EU member state.  
 

 

 

Re the EU. I think that it's slightly different. Unless things have changed, Belgians cannot 'buy' state pension credits when they work abroad. However, if Belgians work in another EU country it does count (in part at least) towards their state pension.

 

I worked in Belgium and receive a state pension from them. (Some of) my working time in the UK was taken into account. I have no idea re the formula used and didn't inquire further as my pension from Belgium was +/-50% more than I was expecting!

It would help if the winter take 24 months to process a CF83 form. And if they  would update the form  so they won't have to ask more questions and make you wait another 12 months.

What government in the world takes 24 months or longer to answer one form.

On 11/29/2025 at 9:20 AM, Larkin said:

There is zero chance of U.K. pensions being unlocked.  It’s been campaigned for for decades and successive governments ignore it, largely because the beneficiaries are so far away. Few people in the U.K. would lobby on behalf of a group they see as sunning themselves in tropical climes.  

Yes l agree, in fact many people in the UK don’t even think that pensioners should even receive the State Pension if they live overseas.

On 11/29/2025 at 5:30 PM, RayC said:

 

I'm pleased that you managed to take some advantage of the previous regulation.

 

The fact that someone does not have access to other UK welfare benefits whilst working abroad is no justification. Imo if someone is no longer resident - irrespective of whether they are a national - they should no longer be entitled to the welfare benefits of that country. The other side of the coin is that I believe that the individual should have the same access to welfare benefits as locally-born workers in their new country of residence.

 

Wrt pensions specifically, I don't know of any other country where you can continue to pay towards the state pension when no longer resident, especially at what was essentially a reduced rate.

The current welfare benefits in Thailand are Baht 600 per month for being over 60 years old (increases to Baht 700 at 70 years old), and free health care. Those are the welfare beneifts of Thai citizens. So even if foreigners who came to live here long term qualified for such benefits, which the vast majority don't, could they live on that? 

51 minutes ago, GarryP said:

The current welfare benefits in Thailand are Baht 600 per month for being over 60 years old (increases to Baht 700 at 70 years old), and free health care. Those are the welfare beneifts of Thai citizens. So even if foreigners who came to live here long term qualified for such benefits, which the vast majority don't, could they live on that? 

 

Probably not but I don't understand your point. 

On 11/28/2025 at 3:04 PM, simon43 said:

from April 2026 people

 

I hope this won't be enacted retrospectively in the future.

 

My wife qualifies/qualified for the minimum state pension, but has never lived in the UK.

 

 

On 11/28/2025 at 3:04 PM, simon43 said:

Did anyone else noticed this statement from Rachel in her recent budget?

 

"UK Chancellor Rachel Reeves revealed in her Budget on Wednesday that from April 2026 people would now need to live in the UK for 10 years to meet the threshold for a full pension and when living outside the UK pay Class 3 contributions rather than Class 2"

 

In other words, no longer will it be possible to pay NI at class 2 (about 182 pounds/year) rates, but must pay at class 3 (910 pounds/year).

 

BBC link:

 

https://www.bbc.com/news/articles/c5y9dgk2pzpo

 

Luckily for me, I was able to pay my voluntary NI top-ups at class 2, and now draw my UK state pension.  But not good news for those expats who are not yet at retirement age.

So 2 things come to mind. 

First, I guess the 'live in UK for at least 10 years', as it's a new rule, will not be retroactive. So those who worked there 8 or 9 years would still be eligible provided they kept topping up Class 2 each year. Correct?

 

Second, if you're within a year or two of retirement age for the State Pension, and living abroad as many here are doing, you could just stop paying and get a slighlty reduced pension, does that sound right?

43 minutes ago, ronnie50 said:

 

 

Second, if you're within a year or two of retirement age for the State Pension, and living abroad as many here are doing, you could just stop paying and get a slighlty reduced pension, does that sound right?

Yes. You get a proportion based on the number of years compared to how many you should have paid for a full SP (people wrongly think it’s 35 years: it used to be but it’s more complex now. My own situation is I needed only 32 years) 

 

But it’s still worth paying for extra years.  Even at the higher rate it represents great value for money. 

 

On 11/28/2025 at 3:04 PM, simon43 said:

Did anyone else noticed this statement from Rachel in her recent budget?

 

"UK Chancellor Rachel Reeves revealed in her Budget on Wednesday that from April 2026 people would now need to live in the UK for 10 years to meet the threshold for a full pension and when living outside the UK pay Class 3 contributions rather than Class 2"

 

In other words, no longer will it be possible to pay NI at class 2 (about 182 pounds/year) rates, but must pay at class 3 (910 pounds/year).

 

BBC link:

 

https://www.bbc.com/news/articles/c5y9dgk2pzpo

 

Luckily for me, I was able to pay my voluntary NI top-ups at class 2, and now draw my UK state pension.  But not good news for those expats who are not yet at retirement age.

Thanks for posting this Simon. I had not picked it up but can act now to top up final 5 years NI contributions - you have just saved me nearly 4k - CHEERS

21 hours ago, MarkT63 said:

Thanks for posting this Simon. I had not picked it up but can act now to top up final 5 years NI contributions - you have just saved me nearly 4k - CHEERS

No problem!  I'll send you my invoice 😂

On 11/29/2025 at 4:20 PM, Larkin said:

There is zero chance of U.K. pensions being unlocked.  It’s been campaigned for for decades and successive governments ignore it, largely because the beneficiaries are so far away. Few people in the U.K. would lobby on behalf of a group they see as sunning themselves in tropical climes.  
 

 

 

On 11/30/2025 at 6:49 PM, theoldgit said:

Yes l agree, in fact many people in the UK don’t even think that pensioners should even receive the State Pension if they live overseas.

 

Might also be worth mentioning that, if my understanding of various threads on the Australian home country forum is correct, Aussie expats are required to live in Australia for at least 2 years after claiming the Aussie equivalent of the UK State Pension.

 

1 hour ago, OJAS said:

Might also be worth mentioning that, if my understanding of various threads on the Australian home country forum is correct, Aussie expats are required to live in Australia for at least 2 years after claiming the Aussie equivalent of the UK State Pension.

Yes. I have a few Aussie mates who have had to do that.

1 hour ago, OJAS said:

 

 

Might also be worth mentioning that, if my understanding of various threads on the Australian home country forum is correct, Aussie expats are required to live in Australia for at least 2 years after claiming the Aussie equivalent of the UK State Pension.

 

Indeed.  I wouldn't be surprised to see this as a manifesto promise from Reform UK at the next UK election.  Patriots stay at home!

On 11/29/2025 at 4:20 PM, Larkin said:

There is zero chance of U.K. pensions being unlocked.  It’s been campaigned for for decades and successive governments ignore it, largely because the beneficiaries are so far away. Few people in the U.K. would lobby on behalf of a group they see as sunning themselves in tropical climes.  
 

 

You can sun yourself in many other SEA countries, it is just Thailand where the increase is not given.