National Insurance Contributions: State Retirement Pensions

(asked on 20th July 2022) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the potential impact of the increase in the National Insurance contribution threshold on eligibility for the State Pension; and what steps his Department is taking to mitigate any consequent loss of entitlement.


Answered by
Guy Opperman Portrait
Guy Opperman
Parliamentary Under-Secretary (Department for Transport)
This question was answered on 5th September 2022

Although the Primary Threshold [PT] at which an employee starts paying National Insurance has increased to £242 per week, the Lower Earnings Limit [LEL] has remained at £123 per week for 2022/23. People will build a qualifying year for their State Pension if their earnings from a single job are at or above £6396 per year [52 times the LEL]. This in effect provides for a zero-rate band between the LEL and the PT where individuals are treated as having paid NI contributions for benefit entitlement purposes.

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