State Retirement Pensions: Self-employed

Department for Work and Pensions written question – answered at on 5 April 2017.

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Photo of Grahame Morris Grahame Morris Labour, Easington

To ask the Secretary of State for Work and Pensions, what assessment he has made of the Government's decision to abolish Class 2 national insurance contributions on the ability of self-employed people to access a full state pension.

Photo of Richard Harrington Richard Harrington The Parliamentary Under-Secretary of State for Work and Pensions

Following the abolition of Class 2 National Insurance contributions from 2018/19 the self-employed will continue to have access to the new State Pension. Self-employed people with annual profits above a new Small Profits Limit will gain access to the new State Pension based on Class 4 National Insurance contributions. The Small Profits Limit will be set at the same level as the annualised Lower Earnings Limit for employees which is £5,876 in 2017/18. Those with profits below the Small Profits Limit who don’t already have a full National Insurance contribution record will be able to access the new State Pension through earnings subject to payment of Class 1 Primary (employee) contributions; National Insurance credits; or payment of Class 3 voluntary contributions.

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