National Insurance Credits: Low Pay

(asked on 29th March 2022) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether she plans to take steps to ensure that workers earning less than £12,570 per year still obtain national insurance credits to obtain the state pension.


Answered by
Guy Opperman Portrait
Guy Opperman
Parliamentary Under-Secretary (Department for Transport)
This question was answered on 1st April 2022

From July 2022, employees will pay no National Insurance on earnings below the Primary Threshold of £12,570 per year (£242 per week).

We have ensured that people with earnings below the Primary Threshold continue to have their entitlement to State Pension protected. Although the Primary Threshold, when people start making National Insurance Contributions, has increased from £190 to £242 per week, the Lower Earnings Limit (LEL) remains at £120 per week. The LEL is the level of earnings above which people are treated as having paid National Insurance, even though they have not paid Contributions.

People with earnings from a single employer above the LEL, receive a Qualifying Year of National Insurance, which counts towards their State Pension eligibility. In addition, there is a wide range of National Insurance credits available, ensuring people can achieve the best possible State Pension outcome when they reach State Pension age.

Reticulating Splines