Is National Insurance good value for money?

[El Cid]

As pointed out. It's just another kind of income tax. They should really just combine it into income tax and save a lot of admin effort.

 

 

That would not help tax payers know where their money is being spent.

 

They should ring-fence NI and it should only be used for pension payments.

 

Then when people complain about a low pension, many complain about not being included in the second state pension; increasing NI would lead to higher pensions.

The only 'benefit' that people would gladly pay extra for.

 

Workers in Britain face a larger financial shock in retirement than European counterparts because their state pension is "one of the least generous in Europe"

 

http://www.telegraph.co.uk/finance/personalfinance/pensions/11189414/Why-Britains-state-pension-is-one-of-the-worst-in-Europe.html

[truman]

That would not help tax payers know where their money is being spent.

 

They should ring-fence NI and it should only be used for pension payments.

 

 

Following that logic should people who pay more NI get a bigger pension?

[unbeliever]

That would not help tax payers know where their money is being spent.

 

They should ring-fence NI and it should only be used for pension payments.

 

Then when people complain about a low pension, many complain about not being included in the second state pension; increasing NI would lead to higher pensions.

The only 'benefit' that people would gladly pay extra for.

 

Workers in Britain face a larger financial shock in retirement than European counterparts because their state pension is "one of the least generous in Europe"

 

http://www.telegraph.co.uk/finance/personalfinance/pensions/11189414/Why-Britains-state-pension-is-one-of-the-worst-in-Europe.html

 

NI was set up to cover welfare and incap as well the state pension. It almost always pays out more than it takes in. If you ring fence it, pensions, welfare and incap would have to be cut.

[El Cid]

Following that logic should people who pay more NI get a bigger pension?

 

It isnt very fair at the moment, people that have paid zero into NI get all the freebies, I guess the fair thing to do is make sure everyone pays in a minimum to get a minimum pension.

[unbeliever]

It isnt very fair at the moment, people that have paid zero into NI get all the freebies, I guess the fair thing to do is make sure everyone pays in a minimum to get a minimum pension.

 

Why just those that pay zero?

Surely the same logic would apply to those who receive more than they pay in during their working life.

It wouldn't make any sense for those in receipt of state handouts e.g. tax credits, to give part of those back to the state in the form of NI contributions; and then imagine that they're contributing to the pension pot. That would just be a pointless illusion.

Would you deny all such people basic support in retirement?

[L00b]

It isnt very fair at the moment, people that have paid zero into NI get all the freebies, I guess the fair thing to do is make sure everyone pays in a minimum to get a minimum pension.

The essence of NI, like any form of taxation, lies in taking most from those who can best afford it, and redistribute disproportionately in favour of those who can least afford it.

 

That's how and why NI is just as fair as income tax (and how and why it may as well be rolled into a few extra income tax percents).

 

By all means, if you'd prefer the UK adopted the "walk-or-die" US system, just say so. I hear it's not very fair either, though. Didn't have you down as an ultra-liberal, either

[Annie Bynnol]

It's a mistake to compare the UK state run healthcare system only with the (mainly) private US system. There are far better examples of private or public/private hybrid systems throughout Europe. France for a start.

 

Yes it would be and I did not.

The link compares efficiency, cost and performance of the health system of New Zealand, Australia, France, Germany, Norway, Sweden, the Netherlands, Switzerland, Canada, USA and the UK.

It also places France last in the Europe list.

 

Commonwealth Fund

[unbeliever]

Yes it would be and I did not.

The link compares efficiency, cost and performance of the health system of New Zealand, Australia, France, Germany, Norway, Sweden, the Netherlands, Switzerland, Canada, USA and the UK.

It also places France last in the Europe list.

 

Commonwealth Fund

 

My bad. .

[Annie Bynnol]

Cobblers. The "poor" pay very little in NI and if they are not earning and sign on it's paid for them! How is that unfair? You want me to pay even more so they don't have to pay those few pence that they do?

 

The poor pay a bigger percentage of NI insurance from their wages as there is a celing- maximum.

So some of "they" pay a bigger percentage than you and some of "they" pay less.

Poorer people also pay a bigger percentage of their income on another tax -VAT.

[Obelix]

The poor pay a bigger percentage of NI insurance from their wages as there is a celing- maximum.

 

Except they don't. Up to £155 a week they don't pay anything.

 

The limit is at £850 a week or something - at which point they are paying higher rate income tax.... so the 10% fall to 2% is more than offset by the 20% hike in income tax..

 

Your numbers are simply not adding up.