Earnings too small to pay NI

Cacran

I have worked part time for 17 years. My earnings are not enough to pay
NI contributions. I am 59 and am unwell. I do not reach pensionable age until I am 66.
I have been looking into finishing work on ill health grounds. As I have savings, I would not be entitled to any benefit, by all accounts. I was under the impression that I would have been credited for N.I my contributions and I would possibly get sick pay if I left work due to failing health. It sounds as though I would not be able to claim anything. Is this right???

mania112

Employment Support Allowance requires you to have savings of less than £16,000 (among other criteria).

Statutory Sick Pay is paid by your employer. So if you leave, they won't pay.

So I think Personal Independence Payment is the one for you: https://www.gov.uk/pip/eligibility

PIP, i'm sure, will count as a NI credit, but this will need to be confirmed.

greenglide

SSP is only payable by the employer if you earn £111 or above. If your part time pays less than this you do not qualify for SSP but equally you haven't paid NI contributions.

anmarj

mania112 wrote: »

Employment Support Allowance requires you to have savings of less than £16,000 (among other criteria).

Statutory Sick Pay is paid by your employer. So if you leave, they won't pay.

So I think Personal Independence Payment is the one for you: https://www.gov.uk/pip/eligibility

PIP, i'm sure, will count as a NI credit, but this will need to be confirmed.

Pip will not count towards Ni.

https://www.gov.uk/national-insurance-credits/eligibility

This shows what counts for credits

xylophone

https://forums.moneysavingexpert.com/discussion/comment/65636833#Comment_65636833

I pay into a works pension

LGPS? Retirement on grounds of ill health?

woolly_wombat

Cacran wrote: »

I have worked part time for 17 years. My earnings are not enough to pay NI contributions.

Have you ever claimed Child Benefit for a child/children under 16? If so then up until 5 April 2010 you should automatically have been eligible for Home Responsibility Protection, which was a scheme to reduce the number years of National Insurance contributions that were required to be eligible for a full state pension. The system changed from 6 April 2010 when HRP credits were converted to NI credits (max 22 years).
See this link:
https://www.gov.uk/home-responsibilities-protection-hrp/overview

Although you aren't actually paying NI, if your earnings are between 111 and 153 pounds per week then you will automatically get NI credits.
See this link:
http://taxaid.org.uk/info/national-insurance/national-insurance-for-employees-and-employers/national-insurance-thresholds

So, as far as your future state pension goes, the situation may not be as bad as you fear?

I am 59 and am unwell. I do not reach pensionable age until I am 66.
I have been looking into finishing work on ill health grounds. As I have savings, I would not be entitled to any benefit, by all accounts. I was under the impression that I would have been credited for N.I my contributions and I would possibly get sick pay if I left work due to failing health. It sounds as though I would not be able to claim anything. Is this right???

As xylophone has stated, you need to determine eligibility for ill-health retirement under LGPS rules. If you are eligible then your LGPS pension would be paid immediately without reduction for early payment.
Link to LGPS Regulations and Guidance here:
http://www.lgpsregs.org/index.php/illhealth

Good luck.

WW

sleepless_saver

As well as pursuing ill health retirement, you can claim contribution based employment and support allowance (ESA) and PIP. For ESA you would have to submit fit notes from your doctor and meet the DWP's criteria. Just being unable to do your present job would definitely not qualify you. Have a look at this info on ESA. Contribution based ESA would last for a year if you were put in the work related activity group and indefinitely if you were in the support group. CB ESA is not affected by your (or your partner's) savings or other income.

PIP would depend on your care or mobility needs and is not affected by your savings or income.

You'd probably find it useful to get some advice from CAB or local welfare rights on your possible entitlements as there are a number of different scenarios depending on your circumstances. Or ask on the Benefits board.

Edited to add: I assumed OP was being credited with NI from her original post but as she is not, first paragraph above is wrong and there would be no entitlement to contribution based ESA.

Cacran

I am so confused by all this. I thank you all for taking time to lead me in the right direction. I have spoken to CAB and they said I don't qualify for benefits.
I was always under the impression that at earnings of between £50 and £60 a week, the NI payment would have been credited.
My husband only gets his works pension, as he took early retirement a while ago. He is being treat for Bladder Cancer at the moment. He does not pay NI either.
I am now feeling a bit worried.

xylophone

I am now feeling a bit worried.

Are you in LGPS? If so, have you explored the ill health retirement option?

JezR

Cacran wrote: »

I was always under the impression that at earnings of between £50 and £60 a week, the NI payment would have been credited.

The lower earnings limit is higher than this. You need earnings of £111 per week in the current tax year to have a NI contribution at 0% (and you start paying above £153). I see this was mentioned above. Below this you would not have a NI contribution.

It was £66 as far back as 1999-2000.

xylophone

You and your husband will be receiving state pension under single tier arrangements ( the legislation has now been passed) - see


https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf