Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of exempting individuals from national insurance contributions if they choose not to access (a) social security services and (b) the NHS.

The National Insurance scheme operates on a pay-as-you-go basis, where today’s contributions pay for today’s benefits. The underpinning principle is not of an individual paying for their own benefits, but rather a system where those in work, employers and voluntary payers pool their resources to meet the claims of all of those who are eligible. Within the scheme, a person’s financial contributions reflect their ability to pay, rather than any likelihood of future entitlement. The proposal to exempt individuals from paying National Insurance contributions would run counter to this principle.