Glossary
What is National Insurance?
National Insurance is a tax on earnings and self-employed profits that helps fund the state pension and some benefits.
How it works
Employees pay 8% on earnings between £12,570 and £50,270, then 2% above (2025/26). Employers pay a separate contribution. Your NI record determines your entitlement to the state pension and certain benefits.
Why it matters now
The Greens would remove the point where NI drops to 2%, charging the full 8% on earnings above £50,270 — a rise for higher earners. National Insurance is also central to debates about how work is taxed compared with wealth.
Plain-English definition for general information only — not financial, legal or tax advice. Rates are 2025/26 unless stated.