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NI Contributions

edited 30 November -1 at 1:00AM in Benefits & Tax Credits
16 replies 1.4K views
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  • xylophonexylophone Forumite
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    A calculation was done for all those under State Pension Age at 6/4/16 which gave each person a starting amount for NSP based on the higher of

    NI (up to 30)/30 x BSP + (Grad +SERPS + S2P - Deduction for Contracting Out)

    NI (up to 35)/35 - Deduction for Contracting Out (Contracted Out Pension Equivalent).

    If the deduction for contracting out was very high then it would be quite possible to have contributed for 40+ years and yet have a starting amount less than NSP.

    It would also be possible have had a starting amount higher than NSP after fewer than 35 years of NI particularly if the person had been a high earner and never contracted out.

    It would also have been possible to have had a starting amount equal to NSP despite having contracted out for a number of years.

    https://www.thisismoney.co.uk/money/pensions/article-4147716/Can-155-state-pension-contracted-out.html
  • venisonvenison Forumite
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    aayush wrote: »
    can I ask how I can make contributions for ni for my wife as hse was looking after my son

    She might qualify for HRP (home responsibilities protection) which would mean a full years NI credit for each year she got child benefit, and missing years in the last 5 (?) can be brought for around £600 per year.
    She needs to check her cont. record.
    MSE bring back discussion Time, its removal is an outrage at best and an attempt at censoring at worst !
  • calcotticalcotti Forumite
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    aayush wrote: »
    can I ask how I can make contributions for ni for my wife as hse was looking after my son

    It is not clear what age son you are referring to.

    If your wife was receiving child benefit for your son she will have got NI credits up to the age of 12 which will give her some entitlement but obviously much less than the full amount.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • Thank you for your help, the link was very helpful. I understand about the Pensions now.
    Do you know if there is anyway of paying for the shortfall for last 2 years in order to qualify the ESA rules on claiming Contributory ESA.
    Also looking ahead to the future, does NI have any impact of Care Home packages or Home Care.

    Thank you
  • edited 13 October 2018 at 9:14AM
    calcotticalcotti Forumite
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    edited 13 October 2018 at 9:14AM
    Connieb wrote: »
    Thank you for your help, the link was very helpful. I understand about the Pensions now.
    Do you know if there is anyway of paying for the shortfall for last 2 years in order to qualify the ESA rules on claiming Contributory ESA.
    Also looking ahead to the future, does NI have any impact of Care Home packages or Home Care.

    Thank you

    If voluntary NI contributions are paid they help towards getting 35 qualifying years for State Pension but they do not count towards entitlement for contribution based ESA. If he was employed but not earning enough to get ni credits there is no way to make this up for ESA purposes.

    Health care is completely separate from NI.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
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