What Is National Insurance??

[Scarlett]

I was just thinking how great the NHS is, and how lucky we are to have it, and how awful it would be if we didn't have it, and how much it costs. Am I right in thinking that the NI which is taken from our wages is to pay for the NHS? In which case, why don't the government increase the amount we pay to it (like the increase tax) in order to help it out a bit? Surely if everyone had a small increase it could help? Or am I missing something?!

[Zacs-Master]

You're missing something.
https://en.m.wikipedia.org/wiki/National_Insurance

[woofgang]

Two points. Firstly the government say that its to cover benefits, not the cost of the NHS
https://www.gov.uk/national-insurance/what-national-insurance-is-for

secondly what you pay in isn’t ringfenced, basically the government of the dsy can spend it on what they like provided they can continue to pay the listed benefits.

Thirdly throwing money at the problem without sorting out the system itself is just a waste of money....bits of it are great but equally bits of it are terrible....bits are cost effective and bits are not.

[KARL]

You are of course correct that having a health service, rather than none, is a very good thing indeed. When you say the NHS is "great", what are you comparing it with ? If you simply look at what is achieved and think that is marvellous then that is one thing (big progress over medieval times when pretty much everyone who fell ill died as a result). But if you trawl through impartial international comparisons then quite a few other national health services score better in efficiency (what you get for the cost to the nation) and efficacy (straight forward results in keeping the nation alive and healthy). I recall one such comparison published a year or so back where (if I remember correctly) England came out number 17 and Scotland number 16. Some would say "a brave effort but could do better".

[BenDToy]

NI is just income tax by another name.
I understand that the NHS is something like the third largest employer in the world. How can we possibly justify that? We certainly don't have the third largest population, or the best health care. Despite popular leftie perceptions, the US (and many other countries) is miles ahead of us but employing many fewer people.

[woofgang]

fifth biggest employer
http://www.telegraph.co.uk/news/uknews/9155130/NHS-is-fifth-biggest-employer-in-world.html

of course in countries where the healthcare is provided by private providers, no matter who actually funds it, then each private provider will be counted as a separate employer.....I bet if all the employees of health providers in the US were counted, it would top out the nhs by quite a bit.

[KARL]

BenDToy, you are of course correct. What is more is that politicians, the media and others talk of income tax starting at £10600 but in fact NI tax is deducted from incomes at around the £8000 mark onward.

[mikey4444]

National Insurance Contributions have nothing whatsoever to do with the NHS.

NIC's are used to provide for old age pensions.

[New Judge]

And so-called Jobseekers' Allowance, Employment and Support Allowance, Maternity Allowance and Breavement Benefit.