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broing, i know, but question about NI

6 replies

oops · 28/10/2008 22:36

Message withdrawn

OP posts:
PhantomOfTheChocolateCakeAvena · 28/10/2008 22:40

It pays for a state pension and for the NHS.

KatyMac · 28/10/2008 22:42

& unemployment benefit
& maternity benefits
& Incapacity benefit

& if I understand right - pretty much all benefits are paid for by the welfare state are funded by NI

oops · 28/10/2008 22:50

Message withdrawn

OP posts:
MrVibrating · 29/10/2008 00:25

These are the benefits that depend on NIC contributions:

Contribution based Jobseeker's Allowance
Incapacity Benefit
State Pension
additional State Pension
Widowed Parents' Allowance
Bereavement Allowance
Bereavement Payment

If you don't pay Class 1 NI because, for instance, you earn below the threshold, you can pay Class 3 NI, but this does NOT give any entitlement to Contribution based Jobseeker's Allowance, Incapacity Benefit or the additional State Pension.

It may be that she accrues some benefit in Poland if she is paying NI in the UK.

KatyMac the link between NI and expenditure on the 'welfare state' no longer exists. NI simply forms part of the general pool of income to the treasury - seethis interesting chart.

KatyMac · 29/10/2008 09:36

What a shame - it was always such a comforting idea

LIZS · 29/10/2008 09:40

There may well be a reciprocal agreement with Poland that contributions paid here ensure she is kept in the system there if/when she returns and can, for example draw pension as if she had remained there throughout.

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