UK Class 2 and 3 NICs: key changes from April 2026

New rules arrive on 6 April 2026 for National Insurance. The Treasury’s Social Security (Contributions) (Rates, Limits and Thresholds Amendments, National Insurance Funds Payments and Extension of Veteran’s Relief) Regulations 2026, signed on 3 March 2026, set fresh rates for Class 2 and Class 3 NICs across the UK. Published on legislation.gov.uk, the instrument was approved by both Houses of Parliament.

Let’s get clear on the labels. Class 2 NICs are the small weekly payments linked mainly to self‑employed people’s State Pension record. Since April 2024 most self‑employed with profits at or above the Small Profits Threshold are credited automatically, meaning you don’t have to pay the weekly amount to secure that qualifying year. If profits fall below that line, you can still choose to pay Class 2 voluntarily to protect your record.

From 6 April 2026 the Small Profits Threshold increases from £6,845 to £7,105, and the Class 2 weekly rate moves from £3.50 to £3.65. That 15p rise is £7.80 across a full year of 52 weeks, taking a complete voluntary year to £189.80. This figure matters if you are just under the threshold and want to keep your State Pension year intact.

Class 3 NICs are different. They are purely voluntary payments that anyone can make to plug gaps in their National Insurance record when Class 2 does not apply. From 6 April 2026 the Class 3 rate rises from £17.75 to £18.40 per week-£956.80 for a full 52‑week year, which is £33.80 more than before. Class 3 buys the same pension year but at a higher price than Class 2.

Here’s how this lands if you freelance while studying. Suppose your taxable profits for 2026–27 are £7,050. You sit just under the £7,105 Small Profits Threshold, so you would not be credited automatically. You could choose to pay Class 2 at £3.65 a week and secure that year for £189.80; this is usually far cheaper than buying Class 3 for the same outcome.

Now imagine your side‑hustle grows and profits reach £8,000. You are above the threshold, so your State Pension year is treated as paid and you would not normally need to hand over Class 2. You may still owe Class 4 NICs on profits-those are separate from these small weekly amounts-but the pension credit arrives without an extra Class 2 bill.

Taking a career break or living abroad can leave gaps. If you are not self‑employed or do not meet the Class 2 rules, Class 3 is typically the route to fill a year. At £18.40 a week in 2026–27, one full year costs £956.80, so always check whether Class 2 is available to you first, because it achieves the same State Pension protection at a much lower price.

There’s a small but important change for employees too. The Lower Earnings Limit, which decides whether your job earns you National Insurance credits, rises from £125 to £129 a week. Pay under that level brings no NI credits; pay at or above it secures credits even if no Class 1 NICs are actually deducted. Other weekly Class 1 limits and thresholds stay at last year’s settings.

The regulations also extend a payroll saving for employers who hire armed forces veterans. Zero‑rate secondary Class 1 contributions for veterans are prolonged to cover 2026–27 and 2027–28, and the special upper secondary thresholds for freeport tax site employees and veterans are maintained. If you run payroll in a small firm or college, that’s two more years of relief to build into your plans.

Behind the scenes, the Treasury has authorised payments of up to 5 per cent of estimated benefit spending into the National Insurance Fund for 2026–27, with a matching power for Northern Ireland. This helps smooth the funding of contributory benefits; it does not change what you pay but it keeps the system steady.

If you want to get ready, check your National Insurance record, note the 6 April 2026 start date, and decide whether you need to buy Class 2 or Class 3 for any missing weeks. For the key figures-£7,105 for the Small Profits Threshold, £3.65 a week for Class 2, and £18.40 for Class 3-our source is the statutory instrument on legislation.gov.uk, signed on 3 March 2026 by the Lords Commissioners of the Treasury.