Jessica O'ConnorAs part of a series of welfare and eligibility measures in the Budget, the Chancellor confirmed changes to how National Insurance contributions (NICs) can be used to build state pension entitlements.
Announcing the policy from the despatch box, she said: “Taxpayers’ money should not be spent on pensions for people abroad.
“I will abolish access to Class 2 voluntary National Insurance contributions for people living abroad.”
The change will prevent non-residents from using the lower-rate Class 2 NICs to top up their UK state pension, tightening the system’s residency link and reducing the cost to the public finances.
