National Insurance Contributions & Qualifying Years and Second Tier Pension Provision
The latest national statistics on National Insurance Contributions & Qualifying Years and Second Tier Pension Provision produced by the Department for Work and Pensions were released on 30 April 2012 according to the arrangements approved by the UK Statistics Authority.
Click this link to access the First Release for the publication.
To access the full publication please follow the link for the DWP Tabulation Tool
DWP Tabulation Tool
Alongside the First Release, there are a large number of tables which enable the user to delve in to the detail. These are provided to the user as:
- The the DWP Tabulation Tool - for National Insurance Contributions and Qualifying years as well as Second Tier Pension Provision with an interactive tool to select one of many possible tabulations.
- Other tables and background information via links on the Tabulation Tool pages (e.g. links to long time series spreadsheets; descriptions of pension schemes.)
This publication can be used for:
- Obtaining numbers of people qualifying for state pension and numbers of people with some kind of second tier pension cover.
- Exploring the characteristics of those qualifying for state pension or with second tier pension cover.
- Statistics on the numbers of people paying various classes of National Insurance in each tax year.
This publication should not be used for:
- Statistics on earnings. This series presents "earnings on which class 1 contributions are paid". This can be a subset of total earnings and is capped at the upper earnings limit set by HM Revenue and Customs. Statistics on earnings can be obtained from http://www.ons.gov.uk/ons/guide-method/method-quality/specific/labour-market/annual-survey-of-hours-and-earnings/index.html
- Statistics on pensions paid to those over State Pension Age. Statistics on State Pension can be found at: http://statistics.dwp.gov.uk/asd/index.php?page=statistical_summaries. Statistics on second tier pensions in payment can be found at: http://www.ons.gov.uk/ons/guide-method/method-quality/guide-to-pension-statistics/private--non-state--pensions/index.html
Users should be aware that administrative changes in the tax, National Insurance and Pension systems can and do affect the published numbers. Therefore, users should read footnotes carefully and be aware that the latest two years of data are provisional.
For a full explanation of the Pensions Reform Act 2007 see: The Pensions Act 2007
For a full explanation of the Pensions Reform Act 2011 see: The Pensions Act 2011
The "Notes" section of the latest First Release notifies users of changes planned in future publications. It also describes the detail of the issues, changes and revisions which form part of this publication.
Please note that the April 2013 publication will not show those awarded credits for childcare and caring responsibilities separately, development will be done for the next release.
Improvements have been made however, to correctly identify those individuals who have credits as well as contribution levels which are below the qualifying level. They are now shown as contributions and credits instead of credits only.
The Lifetime Labour Market Database Tabulation Tool provides the latest estimates on people who have paid National Insurance contributions since 1978/79 and information on membership of contracted out pension schemes and SERPS/S2P membership since the introduction of contracted out schemes in 1978/79 published by DWP. The latest release updates the statistics previously released in May 2012.
The key points from the latest release are:
- There were 28.6 million people making National Insurance Contributions in 2011/12
- Statistics on people who will qualify for state pension under post Pension Reform Act 2007 rules are now published here. Compared to pre Pension Reform Act 2007 rules this shows a greater proportion of people qualifying for a higher percentage of state pension.
- 27.4 million people had some form of second tier pension cover in 2011/12.
- 25.3 million people were covered under the State Second Pension in 2011/12.
Please note: As the 2011/12 tax year figure is provisional it is likely that figures will be surpassed as additional returns are incorporated, continuing the upward trend since the mid 1990s. More details on the level of retrospection expected can be found in the First Release in the Notes section.
Previous releases can be found on the Archive Page Link to new Archive page
DWP complies with the Code of Practice for Official Statistics and supporting Principles.
Detailed policy statements and statement of compliance with the pre-release access to official statistics order 2008 are given below:
Detailed policy and methodology relating to the Statistical Summary:
The United Kingdom Statistics Authority has designated these statistics as National Statistics, in accordance with the Statistics and Registration Service Act 2007 and signifying compliance with the Code of Practice for Official Statistics.
Designation can be broadly interpreted to mean that the statistics:
- meet identified user needs;
- are well explained and readily accessible;
- are produced according to sound methods, and
- are managed impartially and objectively in the public interest.
Once statistics have been designated as National Statistics it is a statutory requirement that the Code of Practice shall continue to be observed.
An ongoing questionnaire, enabling DWP to target future consultations at interested users; shaping the future direction of statistics development to address user needs; and helping ensure value for money, whilst giving users a structured way of expressing their views is available at:
Completed questionnaires can be returned by e-mail to firstname.lastname@example.org or by post to the following address:
Information, Governance and Security
Department for Work and Pensions
Benton Park Road
Newcastle Upon Tyne
Results of the questionnaire will allow DWP to gain further understanding of users and what they see as important with regards to the statistics produced. The hope is that users who are experiencing difficulty will fill the questionnaire in as a structured way of giving feedback. Whilst this won't give a representative view of how users see the statistics, it will certainly give an idea of areas of improvement and help with planning of future developments.
DWP will use the results of the questionnaire to update the uses and users document on an annual basis. Provided DWP get enough responses, the aim is to publish a short paper on uses, including any customer comments.
Coverage: UK. L2 database includes all people paying National Insurance in the relevant tax year - it includes, along with UK residents, those living in other countries who were resident in the UK and paid National Insurance for a part of the year.
Geographic Breakdown: None
Next Release Date: March/ April 2014