National Insurance and Benefits

Peaches James
6 days ago
2 min read

When you’re not working or you’re just surviving, it’s easy to feel like you’re not “contributing.”

But that’s not true.

And it shouldn’t stop you from getting what you’re entitled to.

This chapter is about understanding National Insurance (NI) and benefits — what they do, how they help and how to make sure you’re not losing out later.

What Is National Insurance (NI)?

National Insurance is money that helps fund things like the NHS, State Pension, Statutory Sick Pay and Maternity Allowance.

You pay it through your wages if you're working or you might get NI credits if you're not.

Think of it as your stamp.

It proves you’ve been in the system working, caring, surviving and it builds up over time.

How NI Contributions Work

There are different classes of NI depending on your situation:

Type	Who It’s For	How It’s Paid
Class 1	Employees	Taken from your payslip if you earn £123+/week
Class 2	Self-employed	Paid through Self-Assessment if earnings are high enough
Class 3	Voluntary	You can choose to pay to fill gaps in your record
NI Credits	People not earning	Given automatically with some benefits (but not all)

Important: Not Every Benefit Gives You NI Credits!

If you’ve been on Universal Credit, long-term sick or a stay-at-home parent, you might assume you’re covered.

But it depends on the exact benefit.

Here’s what does and doesn’t count:

✅ NI Credits ARE given for:

Child Benefit (if your child is under 12)
Carer’s Allowance
Employment and Support Allowance (ESA)
Jobseeker’s Allowance (contribution-based)
Maternity Allowance (in some cases)

❌ NI Credits ARE NOT given for:

Universal Credit on its own
Being off work and not claiming a qualifying benefit
Earning below the weekly NI threshold (approx. £123)

How to Check Your NI Record

Visit gov.uk/check-national-insurance-record
Log in or create a Government Gateway account
See how many “qualifying years” you’ve built up
You usually need 10 years for any State Pension and 35 for the full one

If there are gaps, you can ask about voluntary contributions or backdated NI credits.

A Quick Look at UK Benefits

Let’s get one thing clear: benefits exist to support people, not to shame them.

Whether you're in-between jobs, caring for someone, disabled or just getting back on your feet — you deserve support.

Here’s a simple rundown of key UK benefits:

Benefit	Who It’s For	Notes
Universal Credit	Most working-age people	Replaces older benefits like Housing Benefit and Tax Credits
Child Benefit	Parents/guardians	Not means-tested for most; gives NI credits
Carer’s Allowance	If you care for someone 35+ hours/week	Includes NI credits
PIP (Personal Independence Payment)	For people with disabilities	Not means-tested
New Style JSA	If you’ve paid enough NI	Short-term jobseeking benefit
ESA	If you’re too unwell to work	Can include NI credits
Council Tax Support	For low-income households	Reduces your council tax bill