What I can't understand (and I'm nearing retirement age myself so this isn't a younger person whinge), is why people who carry on working in the same job past state retirement age (66 at the moment), deferring their state pension, stop paying NI contributions?
According to a Which? survey, in 2018, 14000 people deferred their state pension when they reached retirement age. At that point they stopped paying NI contributions but, presumably, carried on working on the same salary.
Now I know that's probably a simplistic figure and some of those 14,000 may not have carried on working full time, may have relied on a company pension for a while. But, assuming 10,000 of them stayed in their current jobs and that the average salary of those people is £20K a year, that's nearly £600 per person in NI contributions gone. That's £6.0 million a year lost.
A friend has done this. The deferring has increasing her state pension and she's £600 plus a year better off because of the NI contribution stopping, but her outgoings didn't change when she hit 66 years old. They were the same the day after her birthday as they were the day before her birthday.
I totally agree with not paying increased taxes but this is a tax reduction without income being reduced - and I don't know why it's not been plugged with the money ring-fenced for the NHS.