Paying into the National Insurance scheme may give you access to other benefits as well.
In this guide, you'll find:
When you make National Insurance contributions, you build up your entitlement to what are known as 'contributory benefits'.
- Unemployment benefits, in the form of Jobseeker's Allowance (JSA) and Employment and Support Allowance (ESA)
- Maternity Allowance, if you don't qualify for statutory maternity pay
- Bereavement benefits (Bereavement Allowance, Bereavement Payment and Widowed Parent's Allowance)
- Incapacity Benefit, if you face long term unemployment because of illness or disability.
Some benefits depend on making National Insurance contributions of a specific class. For example, you won't be able claim contribution-based Jobseeker's allowance if you haven't been making employee-based National Insurance contributions.
See below for an at-a-glance view.
Find out more: National Insurance rates – work out how much you need to pay to be entitled to these benefits
How National Insurance affects Jobseeker’s Allowance (JSA)
If you are unemployed and looking for work, you may be able to claim Jobseeker’s Allowance (JSA), and the amount you receive will depend on your National Insurance contributions.
To claim any type of JSA, you must meet the minimum criteria, namely:
- be over 18 years old
- not working full-time (less than 16 hours a week)
- actively looking for work
- not in full-time education
- not claiming Income Support.
There are two types of JSA that you qualify for by paying into National Insurance: contribution-based JSA and new style JSA. If you don't meet the minimum National Insurance contributions for these, you may need to apply for income-based JSA instead.
You can find out more in our table.
National Insurance and Employment and Support Allowance (ESA)
If you're ill or disabled, you may qualify for Employment and Support allowance. The qualifying conditions are broadly similar to Jobseeker's Allowance - you can qualify for contribution-based ESA, or the new style ESA if you're in a full-service Universal Credit area.
You can't claim ESA and JSA at the same time, or if you are above State Pension Age.
To qualify for the new style ESA you'll need to be entitled to apply for Universal Credit.
Changes to JSA and ESA benefits
As Universal Credit is phased in, income-based and contribution-based JSA and ESA that depend on your National Insurance contributions are being phased out. These benefits are being replaced by new style JSA and ESA.
The changes are being rolled out alongside Universal Credit, and will apply to people living in full-service Universal Credit areas.
Universal Credit will also replace Income Support, Housing Benefit, Child Tax Credit and Working Tax Credit.
National Insurance entitlement to Bereavement Allowance
Previously known as the Widow's pension, you may qualify for the Bereavement Allowance if you are at least 45 years old and below state pension age. You will not qualify if you were divorced or you have since remarried or entered a civil partnership. You won't qualify if you are in prison either.
You can claim for up to 52 weeks, from the date your spouse or civil partner died. Entitlement is based on the NI record of your spouse.
Where you have no dependents, bereavement allowance is paid for a year after death to those aged between 45 and state-pension age. The maximum you can get is £112.55 a week if you're aged between 55 and state-pension age. The overall amount depends on your age and your partner's National Insurance contributions.
Bereavement Support Payment and National Insurance
You may qualify for a one-off £2,000 Bereavement payment if your spouse or civil partner died before 7 April 2017. This is a one-off, tax-free lump sum payment.
If they died after this date, you may qualify for the Bereavement Support Payment. To qualify for this, your partner must have paid National Insurance contributions for at least 25 weeks, and died because of a work-related illness or accident. They must have also been under State Pension Age.
Find out more: Which? Tax Calculator - will help you make sure you don't pay more tax and National Insurance than you need to