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A 1940 contribution card for an employed woman. The current system of National Insurance has its roots in the National Insurance Act 1911, which introduced the concept of benefits based on contributions paid by employed people and their employer.
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The Basic State Pension is based on the National Insurance record of the individual. Each year that National Insurance is paid is called a qualifying year. For 2023–2024, for a qualifying year to count, an individual needs to earn at least £6396 if he/she is an employee, or £6725 if he/she is self-employed, and to have paid (or been ...
Workers earning up to £50,200 currently pay 12 per cent in national insurance, while the self-employed pay 9 per cent. But it means somebody on the average salary of £35,000 will save more than ...
(25%) in 1916, and 6s. (30%) in 1918. Altogether, taxes provided at most 30% of national expenditure, with the rest from borrowing. The national debt soared from £625 million to £7,800 million. Government bonds typically paid 5% p.a. Inflation escalated so that the pound in 1919 purchased only a third of the basket it had purchased in 1914.
The Opposition party said that, even with a national insurance cut coming into force on January 6, families in Britain were still likely to be £1,200 a year worse off under Tory taxation plans.
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