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Workers aged over 65 should pay NI

Tory MP Therese Coffey claims pensioners who continue to work should pay National Insurance, suggesting the extra revenue could be passed on as tax breaks to firms which employ young, low-paid workers. Currently, those in employment over the age of 65 do not pay National Insurance on their earnings. However, with more people expected to work for longer due to the removal of the default retirement age, the Treasury estimates up to £2 billion could be raised by changing the rules so pensioners pay NI. “For those who chose to continue working they are doing the same job and then get a pay rise when they turn 65,” said Ms Coffey, backbench MP for Suffolk Coastal. “One of the things I have found from talking to employers is that they are not so keen to take on young people and this would make it more attractive.” She added the extra revenue could be worth an additional £375-a-year to an 18-year-old on the minimum wage of £4.98-an-hour, and £675 more per year to a 21-year-old – saving their employers £450 and £800 respectively.