Is NI contribution record kept alive if in WRAG?

asdman

You can read the explanatory notes for the Welfare Reform bill here .

The section is question is clause 51.

However, to summarise, you can only re-claim ESA(CB) if you re-establish your qualifying NI history. See paragraph 259.

One final point, whilst change to the Bill is unlikely it is still possible, either on its final reading this week, or in the Lords later.

Gordon

Magic & froglegs

I'm not an expert, not even close, but I do not believe you pay NI on pension income, only tax.

There are several Classes of National Insurance, Class 4. which is required to gain a full State Retirement Pension are paid while while are receiving benefits such as IB and ESA.

Class 1 and 2 which are required to claim a Contributary benefit such as ESA(CB), are only paid on earnings from employment.

So to try and answer your questions, as I understand it.

Once you've had your year on ESA, you would be eligible for Income Related ESA, although circumstances may mean that you receive no payments. However, the underlying entitlement remains as long as you are found unfit to work, and therefore you would stilll receive NI with regard to a pension.

In simple terms, in order to reclaim ESA(CB) you need to work at least a year, and possibly two years, before you would re-qualify to claim ESA(CB).

Hope this explains it.

Gordon