The Benefit System
On this page:
National Insurance
(NI) Paying
Tax Benefits Housing and Council Tax
Benefit
National Insurance
(NI)
The purpose of NI contributions is to build up your entitlement
to certain benefits, including the State Pension. Your National
Insurance number is a unique personal account number. The number
also acts as a reference number for the whole social security
system. You pay National Insurance Contributions if you are aged 16
or over and an employee or self-employed, subject to you earning
over a certain level (£97 per week as of August 2006). The type and
amount of NI you pay will depend on your personal circumstances. If
you don't already have one, you will need to apply for an NI
number. For people living in Worcestershire, there is a telephone
number to call to apply for an NI number (0845 6000643). The only
people/agencies who need to know your NI number are:
- Her Majesty's Revenue and Customs
- Your employer
- Jobcentre Plus
- Your local council, if you claim Housing and/or Council Tax
Benefit
Your entitlement to many benefits depends on the amount of NI
you have paid, so it's very important not to give your number to
anyone else.
Summary of the six classes of National Insurance
contributions
|
Class
|
Description
|
|
Class 1
|
Paid by people who work as employed earners, and their
employers.
|
|
Class 1A
|
Paid only by employers who provide certain directors and
employees with benefits in kind which are available for private
use, for example, cars and fuel.
|
|
Class 1B
|
Paid only by employers who enter into a Pay As You Earn (PAYE)
Settlement Agreement (PSA) with HM Revenue & Customs for tax
purposes.
|
|
Class 2
|
Paid by people who are self employed.
|
|
Class 3
|
Voluntary contributions paid by people who wish to protect their
entitlement to the State Pension and who do not pay enough National
Insurance contributions in another class.
|
|
Class 4
|
Normally paid by self-employed people in addition to Class 2.
Class 4 contributions do not count towards benefits.
|
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Paying
Tax
HM Revenues and Customs publish a helpsheet for migrant workers.
This is available in eleven languages other than English. The
helpsheet explains Tax, National Insurance, Tax Credits and
National Minimum Wage. Go to http://www.hmrc.gov.uk/migrantworkers/.
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Benefits
Entitlement to benefit depends on many different factors of your
personal circumstances. Your first port of call regarding benefits
(with the exception of Housing and Council Tax Benefits – see
below) is your local Jobcentre Plus:
- Haswell House, Sansome Street, Worcester, WR1 1UZ
- 12 Lower Mill Street, Kidderminster, DY11 PTT
- Prospect Hill, Redditch, B97 4DL
- Evesham Community Contact Centre, Abbey Road, Evesham, WR11
4SA
- Churchfields, Bromsgrove, B61 8DX
- Portland Road, Malvern, WR14 2JR
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Housing and Council Tax
Benefit
Depending on your circumstances, you may be entitled to benefits
to help you pay for rent and/or Council Tax. Thelocal authorities
administer these benefits. Your entitlement to these benefits may
depend on completion of a "habitual residence" test. Follow these
links to each authority's internet pages regarding these benefits
for further information:
Wyre Forest:
http://www.wyreforestdc.gov.uk/ccm/content/financial/benefit-services/online-for
Malvern: http://malvern.whub.org.uk/home/mhcindex/mhc-benefit.htm
Redditch:
http://redditch.whub.org.uk/home/rbc-your-council-benefits-making-a-claim
Worcester: http://www.worcester.gov.uk/index.php?id=915
Bromsgrove: http://bromsgrove.whub.org.uk/home/bdcindex/bdc-benefits.htm
Wychavon: http://wychavon.whub.org.uk/home/wdcindex/wdc-benefit.htm
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