Your national insurance record will determine your entitlement to many social security benefits. These include:
To be entitled to one of these “contribution-based” benefits, you have to satisfy two contribution conditions (except for bereavement benefits).
The first contribution condition is that you have to have paid enough actual contributions in one or more past tax years (the tax year runs from April 6th to April 5th). The second contribution condition is that you have paid paying, or have been credited with, enough contributions in the last two tax years before your claim for the benefit.
Contributions and credits
The national insurance record is built up from either actual contributions or contributions which are credited, or a combination of the two.
Contributions may be actual deductions from earnings while you are in paid employment. The deductions are made between the age of 16 and state pension age, if you earn more than a certain amount of money.
State pension age is 65 for men. Betwen 2010 and 2020, the state pension age for women will gradually rise from 60 to 65. You can check your state pension age on Directgov.
There are different classes of contribution depending on whether, for example, the contributions are made by the employee or employer or by a person who is self-employed. Different classes of contribution give entitlement to different benefits.
In some circumstances you can be credited with earnings or “Class 1” contributions which may help you satisfy the entitlement conditions to certain benefits.
If you are a carer receiving Carer’s Allowance you should be credited with Class 1 contributions for each week in which the benefit is paid. You mat also be able to get credits if you're a carer but you're not eligible for Carer's Allowance (see section on carers credits for more information).
You can also receive credits:
- for each complete week you receive Jobseekers Allowance or you are available for work and actively seeking work. Even if you are not entitled to Jobseekers Allowance, signing on at a Jobcentre Plus office will help protect your contributions record,
- for one or two complete tax years when you are on a course of full time training, education or an apprenticeship,
- for each week you receive either statutory maternity pay or statutory adoptions pay, or
- for each week when you receive the disability element or severe disability element of working tax credit.
The national insurance scheme
The national insurance scheme is run by Her Majesty’s Revenue and Customs (HMRC). Your national insurance number is the number used to keep track of your national insurance contributions and your entitlement to benefits.
The way in which national insurance credits can help you satisfy the conditions for different benefits is complicated. It may be a good idea to seek advice.
The government's official online source of information on benefits is Directgov.
