NIM01240 - Class 1 structural overview from 6 April 2009: structural changes: effect on entitlement to contributory benefits

National Insurance Contributions Act 2002 (NICA 2002)

Section 3 of the National Insurance Contributions Act 2008 (NICA 2008)

As part of the changes to the structure of Class 1 NICs, the NICA 2002 and subsequently the Pensions Act 2007 ensured that entitlement to contributory benefit continues to be calculated on earnings that attract a Class 1 NICs liability at the main primary percentage. See NIM01102 for more information.

From 6 April 2009, section 3 of NICA 2008 introduced an Upper Accrual Point (UAP) and this was set at £770. See NIM01205 for more information.

From 6 April 2016, Pensions Act 2014 abolished the contracting out of the State pension and the UAP no longer applies from this date, see NIM01209 for more information.

All enquiries about the qualifying conditions for contributory benefit should be referred to the Department for Work and Pensions. Contributors who ask about the effect of Class 1 liability on their entitlement to contributory benefit can be advised that earnings above the Upper Earnings Limit do not count towards benefit entitlement.