Make your money work harder
Get the best deals, avoid scams, and grow your savings with expert guidance. Save 25% now, only £36.75 for a year.
Join Which? MoneyOffer ends 30 September 2025
National Insurance, benefits and state pension
Find out the benefits you may receive as a result of making National Insurance contributions and what it means for your pension
With a background in financial journalism across national titles, Ruby loves helping people take control of their money and specialises in pensions, tax, banking and benefits.
How does National Insurance affect your benefits?
When you make National Insurance (NI) contributions, you build up your entitlement to what are known as 'contributory benefits'. NI contributions also count towards your state pension (more on this later).
Contributory benefits include:
- 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 Support Payment.
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.
- 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 'new style' Jobseeker's Allowance (JSA).
To claim JSA, you need to have both:
- worked as an employee
- paid Class 1 National Insurance contributions or received National Insurance credits, usually in the 2 full tax years before the year you’re claiming in. Self-employed (i.e. Class 4) contributions will not entitle you to this benefit.
You must also:
- be 18 or over (though there are some exceptions for 16 and 17-year-olds)
- be under state pension age
- be available for work
- not currently be working, or be working less than 16 hours per week on average
- not be in full-time education
- not have an illness or disability that prevents you from working
- live in the UK.
How does new-style JSA work?
New-style JSA is a fortnightly payment that is payable for up to six months. You can claim it on its own or at the same time as Universal Credit, if you are eligible. If you qualify for both, the value of your JSA will be deducted from your Universal Credit.
JSA is worth up to £92.05 a week if you're 25 or over, and £72.90 for under-25s.
Confusingly, the benefit year begins on the first Sunday in January, so your qualifying period for National Insurance contributions may be longer ago than you think. For example, if you make a claim on 15 June 2025, you need to have made enough NI contributions in the 2022-23 tax year, and the 2023-24 tax year.
Your savings, capital and partner's income don't affect your entitlement to claim. However, your earnings and any pension income might affect the amount you receive.
- Note: Jobseeker's Allowance used to be split into two types: income-based JSA and contribution-based JSA. Now there is only new-style JSA (which works in the same way as contribution-based JSA). Income-based JSA has now ended for new applicants and been replaced by Universal Credit. Those already receiving income-based JSA will continue to do so until their circumstances change.
National Insurance and Employment and Support Allowance (ESA)
If you're ill or disabled, you may qualify for Employment and Support Allowance. To qualify, you need to have both:
- worked as an employee or been self-employed
- paid enough Class 1 or Class 4 National Insurance contributions or received National Insurance credits, usually in the 2 full tax years before the year you’re claiming in.
You can't claim ESA and JSA at the same time, or if you are above state pension age.
You can claim ESA and Universal Credit at the same time. If you receive both, the value of your ESA will be deducted from your Universal Credit.
To claim ESA, you'll need to go through a work assessment, after which you'll be placed into one of two groups – a work-related activity group, for those who may be able to work in the future, and a support group, for those whose illness will stop them from working.
How much is ESA worth?
In 2025-26, during your assessment period you'll get a weekly ESA payment of:
- £72.90 if you're under 25
- £92.05 if you're 25 or over.
After the assessment period ends, you'll get a weekly ESA payment of:
- up to £128.60 if you're in the work-related activity group
- up to £140.55 if you're in the support group.
Existing ESA claimants may be on a previous form of the benefit, known as income-related ESA. You can find out more about ESA on gov.uk.
- Find out more: what is Universal Credit?
National Insurance contributions and your state pension
State pension is available only to people who have paid, or been credited with, enough National Insurance contributions.
New state pension rules (after 2016)
Since April 2016, the number of qualifying years for the full state pension has been 35 years for both men and women.
To get any state pension, you must have at least 10 qualifying years of National Insurance contributions (NICs). The amount you'll get is proportionate to your contributions – for example, if you have 20 years' full contributions, you'll get 57% (20/35) of the full amount.
At the same time, the state pension changed from a two-tier system (basic state pension and additional state pension) to a single-tier system.
Old state pension rules (until April 2016)
Anyone reaching state pension age on or before 6 April 2016 had to build up 30 years' worth of NICs to get a full state pension.
People in this age group may also still be entitled to the additional state pension – and partners may be able to inherit a portion of this upon their partner's death.
- Find out more: how much state pension will I get?
State-pension age increases
You can only claim state pension once you reach the official 'state pension age'.
The state pension age is currently 66.
It's set to reach 67 for those reaching state pension age before 2028, and eventually 68 for those reaching retirement by 2044.
There is every possibility it will rise further in future.
- Find out more: use our state pension age calculator to determine when you qualify
Contracting out of National Insurance
Some people may find that previous National Insurance contributions don't count towards the limit needed to receive the maximum state pension. That’s because they had contracted out.
While this is no longer possible, it was an option for those in defined benefit company pension schemes. Because they were making their own private pension arrangements, they were able to pay lower NI contributions. The easiest way to find out whether this applies to you is to speak to your employer from the time, your pension scheme, or check your old payslips.
- Find out more: what was contracting out?
National Insurance – Class 3 voluntary contributions
If you're unlikely to qualify for the full state pension because you haven't made enough National Insurance contributions, it's possible to make voluntary Class 3 NICs to fill any gaps in your record. These are £17.75 per week in 2025-26, up from £17.45 in 2024-25.
A full year's worth of NICs costs £923 in 2025-26. If you're filling previous years, you'll pay the cost for the current year, rather than for the year you are making up for.
You can normally go back a maximum of six years, though some people may be able to top-up over a longer period.
Calculating the benefit of making additional NICs is quite complicated, so we've explained everything you need to know in our guide to topping up the state pension.
National Insurance entitlement to Bereavement Support Payment
The Bereavement Support Payment (BSP) has replaced bereavement allowance, widow's pension, bereaved payment and widowed parent's allowance.
You may be eligible to receive Bereavement Support Payments if your spouse, civil partner or partner you were living with as though you were married died in the last 21 months; to get the full amount, you must claim within three months of their death.
Your partner must have been under state pension age, and have either:
- paid sufficient Class 1 or Class 2 National Insurance contributions in any one tax year since 6 April 1975, or;
- died because of an accident at work or a disease caused by work.
To find out more, visit our guide on widow's pension and bereavement allowance.