National Insurance

National Insurance was the beginning of the welfare state in the United Kingdom. It was started by the National Insurance Act 1911 but has changed a great deal since then.

Contributions

People over retirement age do not pay.

There are four sort of contributions (payments).

Class 1 contributions are paid by employers and their employees. Nothing is paid for people who earn less than £123 a week and there is no right to any benefit. Between £123 and £242 a week employees get a credit but dont pay. Between £242 and £967 a week employees pay 12%. Over £175 a week employers pay 13.8% (including for employees over retirement age).

Class 2 contributions are £3 paid by self-employed people.

Class 3 contributions are voluntary, People pay to improve their contribution record, usually to protect their pension.

Class 4 contributions are paid by self-employed people as a portion of their profits.

People who cannot work for some reason may get NI credits, usually when claiming benefits. [1]

Benefits

The benefits with a contribution condition:

References
  1. "National Insurance rates and categories". GOV.UK. Retrieved 2023-01-26.
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