{"id":5228,"date":"2017-03-11T10:30:11","date_gmt":"2017-03-11T09:30:11","guid":{"rendered":"https:\/\/ounews.co\/?p=5228"},"modified":"2017-03-11T10:30:11","modified_gmt":"2017-03-11T09:30:11","slug":"explainer-national-insurance","status":"publish","type":"post","link":"https:\/\/www.open.ac.uk\/blogs\/news\/arts-social-sciences\/society-politics\/explainer-national-insurance\/","title":{"rendered":"Explainer: What is national insurance?"},"content":{"rendered":"

A tax called national insurance<\/a> has become the centre of a row within Britain\u2019s ruling Conservative Party. The recent budget<\/a> announced a rise in the tax for the self-employed (from 9% to 11% on profits above \u00a38,060 \u2013 still less than the 12% paid by employees). But a number of Conservative MPs have strongly criticised the announcement, forcing the prime minister to delay any changes until autumn<\/a>. \"The<\/p>\n

So what is the tax at the centre of this debate and how significant is the rise? National insurance is a tax on pay, paid by employees, their employers and the self-employed. But it\u2019s not just a tax \u2013 by paying some types of national insurance, you build up an entitlement to claim certain state benefits, including the state retirement pension and various benefits payable on death to your spouse or partner, or to you when you are unable to work.<\/p>\n

This principle of benefits that you contribute to was first introduced in the UK in 1911 and became enshrined in the Beveridge reforms<\/a> of the 1940s that still underpin today\u2019s welfare state.<\/p>\n

There are different types of national insurance contribution, called \u201cclasses\u201d. They are paid by different people and carry different benefit entitlements. The main classes are summarised here:<\/p>\n