About our National Insurance news
Latest news on National Insurance, providing comprehensive coverage of contributions, benefits, rates, thresholds, and changes to the UK's social security system.
National Insurance (NI) is a cornerstone of the UK's welfare state, serving as a form of social security since its introduction in 1911. Today, it affects millions of workers, employers, and self-employed individuals across the country. In the 2019-20 financial year, NI contributions accounted for a significant 17.5% of all UK tax revenue, raising £145 billion.
Recent developments in National Insurance have seen several changes to contribution rates and thresholds. As of August 2024, the standard employee contribution rate stands at 8% for earnings between the Primary Threshold and Upper Earnings Limit, with a 2% rate on earnings above this limit. These rates reflect the reversal of the controversial 1.25 percentage point increase that was briefly implemented in 2022 before being scrapped later that year.
The human impact of National Insurance is far-reaching. It funds various benefits, including the State Pension, Employment and Support Allowance, and Jobseeker's Allowance. The system also provides NI credits for those unable to work due to circumstances such as unemployment, illness, or caring responsibilities, ensuring continued benefit entitlement during these periods.
Historically, National Insurance has undergone significant changes since its inception. From the use of physical stamps on contribution cards to today's digital PAYE system, the administration of NI has evolved dramatically. The Beveridge Report of 1942 and the post-war Attlee government's expansion of the welfare state were pivotal moments in shaping the modern NI system.
Looking ahead, the future of National Insurance remains a topic of ongoing debate and potential reform. Issues such as the alignment of NI and Income Tax thresholds, the sustainability of the National Insurance Fund in light of an ageing population, and the system's role in funding social care are likely to dominate discussions in the coming years. Stay informed about these crucial developments and their potential impact on your finances and benefits with our comprehensive NewsNow feed on National Insurance.