Chancellor Rachel Reeves has been told to “charge” pensioners National Insurance to “help pay for social care.”
State pensioners could be forced to pay National Insurance at 8 per cent
The Labour Party government has been urged to consider charging state pensioners National Insurance at EIGHT per cent. The new Labour Party government Chancellor Rachel Reeves has been told to “charge” pensioners National Insurance to “help pay for social care.”
Sir Andrew Dilnot suggested scrapping the age limit for individual contributions, meaning those who continue to work past the state pension age would pay the tax. He said: “At the moment, pensioners do pay tax. They pay income tax and they pay indirect taxes. But they don’t pay the national insurance contributions.
“I think if a government does decide to have a tax that is used explicitly to pay for [social care] in part, then it does seem reasonable to have pensioners covered by that tax, just as those of working age are.”
READ MORE State pensioners face working ‘beyond age 70’ because of 2015 rule
If you’re employed, you stop paying Class 1 National Insurance when you reach State Pension age under current rules.
If you’re self-employed you stop paying Class 4 National Insurance from 6 April (start of the tax year) after you reach State Pension age.
Even if you’re still working, when you reach State Pension age you usually stop paying National Insurance contributions.
You can claim back National Insurance if you’ve overpaid. If you’re self-employed then your Class 2 National Insurance contributions will no longer be treated as paid.
You stop paying Class 4 National Insurance from 6 April (start of the tax year) after you reach State Pension age. For example, you reach State Pension age on 6 September 2025. You’ll stop making Class 4 contributions from 6 April 2026 and pay your final Class 4 bill by 31 January 2027, together with your Income Tax.
If you continue working, show your employer proof of your age (a birth certificate or passport, for example) to make sure you stop paying National Insurance.
If you do not want your employer to see your birth certificate or passport, HM Revenue and Customs (HMRC) can send you a letter to show them instead.