National Insurance

Almost everyone in the UK who works, including self-employed people, must pay National Insurance Contributions (NICs). NICs fund state benefits and services including the state retirement pension and the NHS. Employees have NICs deducted from their pay by their employer; self-employed people pay it themselves. Anyone who does not pay enough NICs will not receive certain contributory benefits such as Jobseeker's Allowance or a full state pension. A National Insurance number is issued to young people before their 16th birthday.