why do we pay national insurance in the uk
National Insurance In the United Kingdom, National Insurance (NI) is a system of taxes paid by workers and employers, used primarily to fund state benefits. It was initially a contributory system of insurance against illness and unemployment, and later also provided retirement pensions and other benefits.[1] It was first introduced by the National Insurance Act 1911 and expanded by the Labour government in 1948, and has been subject to numerous amendments in subsequent years.
Child benefits in the United Kingdom The Child Benefit Bill was introduced in 1975 by Barbara Castle, introducing for the first time a universal payment, paid for each child, doubling the number of children within its scope. Like the family allowance, which it replaced, the new benefit was not means tested; an attempt by the Callaghan government to introduce this was thwarted in 1976 when cabinet papers were leaked to the Child Poverty Action Group.[10]