Are you one of the many Irish non-residents paying into the UK state pension? If so the most recent UK Budget announcement around the state pension will affect you as the government set about tightening up rules for non-residents!
The changes for non-residents take effect from April next year primarily affecting voluntary National Insurance contributions. The reforms aim to ensure stronger UK ties for pension eligibility. Non-residents will lose access to the cheaper Class 2 voluntary contributions @ £182 per year and must meet the 10-year UK residency rule.
What has changed?
From 6th April 2026
• you will need to have 10 continuous years of UK residency to qualify.
• Those living outside the UK must buy Class 3 VNICs @ £923 per year.
It means that Irish residents can now only buy the more expensive Class 3 rate VNICs costing @ £923 annually – costing over 5 times more than the Class 2 VNICs!
What you can do before 6th April 2026?
If you have worked in the UK for at least 3 years you should do the following asap:
1. Check your National Insurance record now to see how many qualifying years you
already have. You can do this by logging onto your UK Government Gateway account
to see how many qualifying years you have on record.
Check your National Insurance record – GOV.UK.
2. Request a State Pension Forecast
Again use gov.uk/check-state-pension to see how much State Pension you are on track to get. Review whether you can still pay Class 2 before April 2026 and whether that makes sense for you.
Check your State Pension forecast – GOV.UK.
3. Consider Topping Up
If you are eligible for Class 2 VNICs you may be able to buy up to 6 years of backdated contributions at the cheaper rate before 6th April 2026.
4. Seek Advice
Consider consulting a cross-border pensions adviser to decide if paying now makes sense for your own situation.
Quick Recap on the value of the UK State Pension
You usually need 35 qualifying VNICs years for the full State Pension and at least 10 years to get anything, though some people who were contracted out need more than 35 years to reach the maximum.
Full Rate UK State Pension* £203.85 per week £10,600 per annum gross
UK State Pension Age Payable at age 66 2025
Rising to age 67 2028
*The rate you will receive is based on your National Insurance record over your working life, so the amount you get could be different from this.
You are liable to Irish income tax on the gross pension amount received from the UK but you may be subject to relief under the double taxation agreements which exist between Ireland and the UK.
Thinking about topping-up your UK State Pension?
Whether it is worth buying extra Voluntary National Insurance Contributions depends on your age, health, current qualifying years, and your own personal finances.
• If you are close to pension age; or need a few more years to hit the 10 year residency requirement, topping up will boost your entitlement.
• It’s usually not worthwhile if you already have 35 qualifying years, or the new 10 year residency rule effectively rules you out.
Remember the risks: exchange rate fluctuations (i.e. a weaker pound against the euro) may reduce your purchasing power.
Please note this article does not constitute as advice and everyone’s situation is different.
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