Nat Ins Contributions for Pension

Dilly

Hi
I was wondering if anyone had any information about the abolition of the NI contributions for self employed persons effective 2017 and pension contributions
Currently my husband earns less than the sum required for small earnings, but has paid NI cat 2 to get his state pension on a voluntary basis
In 2017 the NI cat 2 for self employed persons is to be abolished, but there was not mention of what would happen in his circumstances. Or at least I could not find any. Perhaps it hasn't come out yet?
Any info would be apprieciated

molerat

Although the full details are not out yet I presume he will either have to pay earnings related class 4 or the more expensive (than the ridiculously cheap class 2) class 3

grey_gym_sock

in the budget, it said that class 2 NI would be abolished from april 2018.

and that they haven't decided exactly how self-employed people will build up entitlement to state pension after that. but they seemed to thinking of giving entitlement automatically for profits over c. £6k (similarly to the way that employees build entitlement when their earnings go over about that level), or otherwise letting people choose to buy class 3 (which is, as molerat says, much more expensive than class 2).

Zanderman

The wording from the budget document (available here https://www.gov.uk/government/publications/budget-2016-documents/budget-2016) says

The government announced its intention to reform self-employed National Insurance contributions (NICs) in the March 2015 and July 2015 Budgets. This Budget delivers on that commitment. From April 2018, Class 2 NICs will be abolished. This represents an annual tax cut for 3.4 million self-employed people of £134 on average.127 This will allow millions of self-employed individuals to keep more of their money and invest it back into growing their business, as well as ending an outdated and complex feature of the NICs system.

Note the comment about allowing the self-employed to keep this money... But making no mention of how NI will be covered...

Followed lower down the document with...

Abolishing Class 2 National Insurance contributions (NICs) – The government will abolish Class 2 NICs from April 2018. The government will publish its response to the recent consultation on benefit entitlement for the self-employed in due course. This will set out details of how the self-employed will access contributory benefits after Class 2 is abolished. (NICs Bill) (32)

Which clearly suggests that the self-employed will, er, be spending money on NI after all, so not saving, and possibly even paying more (I doubt it will be less), they aren't saying. But at least there will be provision to pay NI.