04 Dec Important Legislation Updates

Changes to Voluntary National Insurance Contributions for Time Abroad (Effective from 6 April 2026)

From 6 April 2026, significant changes will apply to voluntary National Insurance contributions for those living or working abroad:

• Voluntary Class 2 contributions will no longer be available for those abroad.

Instead, you can only pay Class 3 contributions for time spent outside the UK.

This change will not affect contributions for time abroad before 6 April 2026.

Who is affected?

Individuals who currently pay or plan to pay voluntary Class 2 National Insurance contributions while working abroad after April 2026.
Class 3 contributors are unaffected and do not need to reapply.

Eligibility to Pay Class 3 Contributions (from April 2026):

Applicants must have:

• Lived in the UK for 10 consecutive years, or
• Paid at least 10 years of National Insurance contributions in the UK.

Financial Services Compensation Scheme (FSCS)

From 1 December 2025 the Financial Services Compensation Scheme (FSCS) deposit protection limit will rise to £120,000.
This means that if you hold deposits or savings with a UK-authorised bank, building society or credit union and it goes out of business, FSCS can compensate you up to the new limit of £120,000 per eligible person, per authorised firm.

Should you have any related questions, please contact PX Wealth by email to welcome@px-wealth.com or welcome@pensionexchange.com and we’ll be pleased to assist.