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Original poster

Can someone explain the national insurance rise please?

32 replies

furrytoebean · 16/12/2019 14:48

I've just read that Borris is raising the threshold to paying national insurance.
Will this not just mean more people don't pay it and therefore more people will have gaps in their National insurance and be locked out of the state pension?
So it seems like a good thing for poor people but will actually hurt them in the long run.
I know you can pay voluntary contributions but I don't think it's very clear how to do this and lots of people are just going to think it's a tax break with no consequences and this is only for pensions not any other benefit.
Am I missing something? Is there going to an expansion on the credit system?

OP posts:
Original poster
furrytoebean · 16/12/2019 15:25

I have a couple of incomplete years from when I had a job where I worked sporadic hours, from when I was a student and a year where I changed jobs and had a gap.
I wasn't eligible for working tax credits because I lived with a partner.

I'm actually fine because I went back and paid to fill in my gaps, but I do think there'll be people who may not know they have gaps in the first place.

OP posts:
Grasspigeons · 16/12/2019 15:18

I had wondered the same OP.
I am only just over the threshold at the moment and i dont get any benefits to get NI stamps in other ways as my partner earns enough so we dont need benefits.
I thought this could seem great but actually might mean i dont qualify for my state pension. I will have to see how it works out.

user1497207191 · 16/12/2019 15:15

There are 2 thresholds. There's a lower threshold where you don't pay NIC but get credits anyway, and then a higher threshold where you pay NICs. As long as the lower threshold continues to rise only by inflation as previously, all will be fine for the lower earners earning between the lower and higher threshold - they'll still get their credits towards state benefits.

EtInTerraPax · 16/12/2019 15:03

If you earn less than the threshold...then yes, surely you get a credit, because you'd be eligible for some form of benefit or income support/tax credit etc?
Which people are getting incomplete NI years?

Original poster
furrytoebean · 16/12/2019 15:00

Im sorry but I'm not sure I follow what you mean.

At the minute if you earn less than the threshold, unless you apply for a voluntary contribution, are eligible for a credit or are on another benefit then you get an incomplete year.

As far as I'm aware you have to earn over the threshold every week for the whole year to qualify for a complete year so people on 0 hour contracts or on unreliable jobs could easily fall under when they raise it.

OP posts:
EtInTerraPax · 16/12/2019 14:53

I would have assumed that people below the threshold would have their contribution made from general taxation, and thus still receive their NI credit? Isn't that what happens if you're on benefits or maternity leave etc?

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