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National Insurance Credits

Answer

The available information is in the tables. Information provided for PQ1249 and PQ1250 is the number potentially eligible for national insurance credits rather than the numbers expecting to receive them. The estimates therefore include people eligible for credits but who might also be economically active and also paying national insurance (NI) contributions. For example, a person’s eligibility to home responsibilities protection is based on receipt of child benefit regardless of whether that person is working and paying NI contributions. All estimates have been provided by the Government Actuary’s Department.

PQ/05/1248 GB, thousands, average numbers per week
What percentage and number of working age adults (by gender) they estimate will be accruing national insurance credits in 2010 and 2020 because	(a)   they will be above the lower earnings limit (although below the lower tax threshold) and	2010–11
	Percentage Number	Men
Women
Men
Women
	0.5% 1.4% 93 246
		2020–21
	Percentage Number	Men
Women
Men
Women
	0.4% 1.0% 74 202
	(b)   they are in receipt of tax credits but are below the lower earnings limit	2010–11
	Percentage Number	Men
Women
Men
Women
	n/a n/a n/a n/a
		2020–21
	Percentage Number	Men
Women
Men
Women
	n/a n/a n/a n/a

Please note the following about the above estimates (PQ/05/1248):(1) Projections relating to tax credits are not reliable due to changes in the tax credit system and therefore information has not been provided for part (b).(2) Numbers are based on number of jobs, not individuals; therefore if an individual has two jobs with earnings above the LEL but below the lower tax threshold they will be counted twice in the table.(3) Estimates are based on projections for the Update to the Quinquennial Review(QR) of the National Insurance Fund (NIF) published in December 2004 and are for Great Britain (the figures come from the prices uprating of basic state pension with 2 per cent real earnings growth scenerio, details on the assumptions underlying those projections are provided in the report on the Update to the QR of the NIF).(4) Estimates of the working age population are from the 2003-based population projections and define working age population to be all people aged 16 to state pension age.(5) The number of women includes women retaining the option to pay at the reduced rate.

PQ/05/1249 GB, thousands, average numbers per week
What percentage and number of working age adults (by gender) they estimate will be eligible national insurance credits in 2010 and 2020 for—	(a)   incapacity benefit and other disability benefits;	2010–11
	Percentage Number	Men
Women
Men
Women
	8.7% 6.8% 1,672 1,200
		2020–21
	Percentage Number	Men
Women
Men
Women
	8.9% 8.5% 1,724 1,644
	(b)   statutory sick pay, statutory maternity pay and connected benefits;	2010–11
	Percentage Number	Men
Women
Men
Women
	0.0% 0.2% 0 43
		2020–21
	Percentage Number	Men
Women
Men
Women
	0.0% 0.2% 0 44
	(c)   carers allowance;	2010–11
	Percentage Number	Men
Women
Men
Women
	0.7% 2.1% 130 372
		2020–21
	Percentage Number	Men
Women
Men
Women
	0.7% 1.9% 134 378
	(d)   jobseekers allowance,
programmes and other
unemployment benefits;
	2010–11
	Percentage Number	Men
Women
Men
Women
	3.7% 1.5% 716 256
		2020–21
	Percentage Number	Men
Women
Men
Women
	3.8% 1.4% 737 268
	(e)   home responsibilities
protection for children under the age of 16 years;	2010–11
	Percentage Number	Men
Women
Men
Women
	1.2% 30.1% 239 5,297
		2020–21
	Percentage Number	Men
Women
Men
Women
	1.2% 27.3% 242 5,309
	(f)   home responsibilities
protection for other caring activities;	2010–11
	Percentage Number	Men
Women
Men
Women
	0.0% 0.0% 0 1
		2020–21
	Percentage Number	Men
Women
Men
Women
	0.0% 0.0% 0 1
	(g)   credits under existing rules for autocredits	2010–11
	Percentage Number	Men
Women
Men
Women
	7.5% 0.6% 1,449 107
		2020–21
	Percentage Number	Men
Women
Men
Women
	7.6% 9.2% 1,480 1,780
	total others (starting credits)	2010–11
	Percentage Number	Men
Women
Men
Women
	5.9% 6.1% 1,130 1,069
		2020–21
	Percentage Number	Men
Women
Men
Women
	5.4% 5.1% 1,048 1,000

PQ/05/1250 GB, thousands, average numbers per week
What percentage and number of working age adults (by gender)
they estimate in total will be eligible national insurance credits in
2010 and 2020			2010–11
	Percentage Number	Men
Women
Men
Women
	27.7% 47.5% 5,336 8,345
		2020–21
	Percentage Number	Men
Women
Men
Women
	27.7% 53.6% 5,366 10,422

Please note the following about the above estimates (PQ/05/1249 & PQ/05/1250):(1) These figures include ““potential credits”” cases. For example, there are people eligible for credits because of home responsibilities protection, autocredits and education credits (among others) who might be economically active, in work and therefore also paying national insurance contributions.(2) Part (f) asks about ““credits under existing rules for auto-enrolment”” and we have assumed this to mean those receiving credits because of autocredits. Autocredits projections assume that autocredits will be available to men and women aged 6064 following equalisation of state pension age, which begins in 2010. This is in line with current policy.(3) Figures represent the average number in any given week in the year and are not the number who might be eligible at some point in that year.(4) Numbers represent working age population—age 16 to pension age. Based on Government Actuary’s Department (GAD) 2003 population projections for Great Britain (GB). Allowance is made for raising female pension age between 2010 and 2020.(5) Estimates of numbers claiming each benefit are provided by GAD.(6) The total credits will add up to more than the numbers inactive. This is because it is possible to be economically active and receive credits. For example, the unemployed are counted as ““active”” but will get credits if claiming JobSeekers Allowance.(7) The estimates are based on the same assumptions for economic activity as used for the GAD QR update.(8) Starting credits (included in the other category) are awarded from the age of 16 for up to 3 years for those that need them.(9) No data is given for statutory sick pay (SSP) or statutory maternity pay (SMP). People with SSP or SMP are employed, liable for contributions and are not normally entitled to credits.

Secondary information

Type

Written question

Reference

1248; 673 c294-300WA

Session

2005-06

Subjects

Eligibility Gender National insurance Recipients Welfare tax credits Earnings limits National insurance credits

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk