Make National Insurance Contributions Annually Based - Not weekly Based

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Currently, National Insurance contributions are based on what you earn within a week or month. You can earn up to 157 pounds within a week (0r 680 pounds within a month). Anything over this limit you will pay a 12% deduction on for National Insurance. Furthermore, once this has been deducted from your wages, it can only be traded in for a credit for your state pension and not refunded. 

I am part of a growing number of young people with a zero-hour based contract being penalised by the current system for NI contributions. There are some months in a year where those on a zero-hour contract earn enough money over the allowance to pay NI - yet there are other months within the year where we earn almost nothing, as there is no work available. If NI contributions took annual earnings into account as opposed weekly/monthly earnings, we would not earn enough across the year to cross the threshold pay NI. We are being persecuted for taking what work we can, when we can.

For example, 4,200 earned over a year equals 81 pounds a week (this is under the 157 pounds a week threshold for NI contributions). However, if shifts are ad hock due to availability, then payments will be inflated when paid in blocks - yet they need to last months. In this example, 179 pounds of NI was paid and if it had been taken annually then NONE would be paid. This 179 pounds to low paid workers (equivalent to an extra 3 pounds 44 pence a week) could make a huge difference to standards of living throughout a year. 

Please sign this petition. Young people and other low paid workers already have enough of a struggle to get on their feet and gain independence financially without this.

Thank you,

Nicolle



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