UK Pension Top-Up Scheme Faces Scrutiny Over Foreign Exploitation

HMRC's inability to track residency and nationality data raises concerns about oversight as international interest in the scheme grows.

The UK state pension top-up scheme has seen a surge in voluntary contributions, with claims rising from 37,000 in February to 138,000 by the end of March 2025.
Foreign nationals are reportedly taking advantage of the scheme, which allows individuals with just three years of UK residency to purchase missing National Insurance years.
HMRC has admitted it cannot analyze contributions by nationality or residency, citing data limitations, which has drawn criticism from experts questioning the lack of transparency.
The scheme has been heavily promoted internationally, with financial advisors in Ireland and Australia highlighting its appeal as a cost-effective way to secure UK pension benefits.
Critics warn that the government's inability to monitor the scheme's international exploitation undermines fiscal accountability, as state pensions represent a significant portion of UK public spending.