Polly\’s question we can answer

Why do the over-60s pay no national insurance, however much they earn? Abolishing that would bring in £3bn, and that is enough to repair the shaming state of care.

Because national insurance is just that, insurance.

Once you\’ve paid the premium you\’ve paid the premium.

If you want to abolish that link, then fine (as the new pension for everyone will do). At which point you stop having national insurance and simply fold it into income tax.

10 thoughts on “Polly\’s question we can answer”

  1. As always with Polly, she could make a difference to this, being one of those over-60s herself.

    I believe you know the address; tell her where to send the cheque…

  2. Men pay NI until 65 (or, in the case of self-employed men, until the end of the accounting year that follows their 65th birthday).

  3. I dunno, I think it’s been a tax for a while now.

    For most people, if you haven’t paid NI then you’ll get means-tested benefits instead (for both unemployed and pensioners), so the benefit of contributions is minimal.

    I’d say since the pension minimum income guarantee (or whatever it’s called) came in, the contribution principle (and therefore the insurance aspect of NI) has been pretty much dead for most people.

  4. Good luck telling all existing pensioners that you’re increasing their tax by a third.

    That will get loads of applause, really it will.

  5. John77, you’re mistaken. You don’t pay NI on a pension, whatever age you receive it at.

    All those public “servants” who get to retire at 52 or whatever it is? No NI on their pensions. None.

  6. @Peter MacFarlane
    Try reading what I actually wrote.
    Since when was self-employed earnings a pension?
    No-one pays NI on investment income, capital gains, lump sum compensation for injuries etc etc etc but I find it difficult to imagine anyone interpreting my comment as a claim that these are liable for NI for men aged under 65.

  7. I’d vote to start charging them NI. They all say:

    “but we’ve paid into the system all our lives…”

    to which I answer:

    “Yes, and you spent it all plus another 800 billion quid”

  8. Richard above is absolutely right. We should drop the pretence, and roll NI into income tax (importance also highlighted by the following post on top tax rates).

  9. Good luck telling all existing pensioners that you’re increasing their tax by a third. That will get loads of applause, really it will.

    Which is a reason not to do it?

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