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National Insurance Credits

Written By

Jyo Yadav

April 15, 2024

National Insurance Credits

Ensuring people have a future is a crucial role of National Insurance Credits as they contribute towards State Pension benefits and provides access to state support. It’s essential to know how to use and benefit from National Insurance Credits if you’re not working, ill or caring for someone. Utilizing these credits can help lay a groundwork, for your retirement and provide security in circumstances.

National Insurance Credits are available to individuals:

Looking for a job,
Unwell or disabled,
Maternity, Paternity or Adoption pay,
Parents or guardians,
Carers,
On Working Tax Credit,
On Universal Credit, or
Partners of people in Armed forces,

National Insurance Credits is not available to married woman who is paying reduced rate National Insurance.

Types of National Insurance Credit

There are three types of National Insurance Credit and individuals can apply for the credit based on their situation. These are namely:

Class 1 National Insurance Credits: Employed individuals with wage more than £123 and less than £242 per week are eligible for Class 1 NIC towards their State Pension.
Class 3 National Insurance Credits: Individuals who are not eligible for Class 1 or Class 2 contributions, choose to pay voluntary Class 3 contribution to fill the gaps in their National Insurance Record.
Class 3 National Insurance Credits for Carers: Individuals taking unpaid care of others for at least 20 hours per week as part of their responsibility are eligible for Class 3 National Insurance Credits for Carers to contribute towards their State Pension.

A person can be eligible for either of the above National Insurance Credits depending on their individual situation. Some of the situations and individual entitlement to the credit are explained below in a more detailed manner:

#	Scenario	Eligibility	Credits
1	Looking for work	You’re on Jobseeker’s Allowance, and Not in education employment, or working 16 hours or more a week	You get Class 1 credits automatically
1	Looking for work	You’re unemployed, and Looking for work, but not on Jobseeker’s Allowance	Contact your local Jobcentre to claim Class 1 credits
2	Unwell or disabled	You’re on Employment and Support Allowance (ESA), or Unemployability Supplement or Allowance	You get Class 1 credits automatically
		You’re not on Employment and Support Allowance but you satisfy the conditions for it	Apply for New Style ESA to get Class 1 credits
		You’re on Statutory Sick Pay, You do not earn enough to make a qualifying year	Apply for Class 1 credits.
3	Maternity, Paternity or Adoption pay	You’re on Maternity Allowance	You get Class 1 credits automatically
3	Maternity, Paternity or Adoption pay	You’re on Statutory Maternity, Paternity or Adoption Pay, or Additional Statutory Paternity Pay, and You do not earn enough to make a qualifying year	Apply for Class 1 credits.
4	Parents or guardians	You’re a parent or guardian registered for Child Benefit for a child under 12	You get Class 3 credits automatically
		You want to transfer credits from a spouse or partner who got Child Benefit for a child under 12	Apply to transfer Class 3 credits between parents or guardians
		You’re a foster carer, or a kinship carer in Scotland	Apply for Class 3 credits
5	Carers	You’re getting Carer’s Allowance payments or (in Scotland only) Carer Support Payment	You get Class 1 credits automatically
		You’re on Income Support and providing regular and substantial care	You get Class 3 credits automatically
		You’re caring for one or more sick or disabled person for at least 20 hours a week	Apply for Class 3 carer’s credits if you’re not on Carer’s Allowance, Carer Support Payment, or Income Support
6	On Working Tax Credit	You get Working Tax Credit with a disability premium, and You are an employed earner with earnings below £6,396 or have profits of less than £6,725 if you’re self-employed	You may get Class 1 credits automatically.
		You get Working Tax Credit without a disability premium, You are an employed earner with earnings below £6,396 or have profits of less than £6,725 if you’re self-employed	You may get Class 3 credits automatically.
		You and your partner get Working Tax Credit – only one of you will get Class 3 credits	You may get Class 3 credits automatically.
7	On Universal Credit		you get Class 3 credits automatically
8	Partners of people in Armed forces	You’re married to or a civil partner of a member of the armed forces, went with your partner on an overseas posting after 6 April 2010, and are returning to the UK	Apply for Class 1 credits
8	Partners of people in Armed forces	You’re married to or a civil partner of a member of the armed forces, went with your partner on an overseas posting after 6 April 1975, reach state pension age on or after 6 April 2016, and are not getting Class 1 credits	Apply for Class 3 credits