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Effect on state benefits

Married woman's and widow's reduced rate Class 1 National Insurance contributions don't count towards 'contributory benefits' like the basic State Pension and bereavement benefits. So if you've chosen to pay these (when an employee) or not to pay Class 2 contributions (when self-employed) you won't normally be able to claim benefits based on your own contributions record. However, you may still be able to get some benefits based on your husband's (or your late husband's) contributions.

State benefits you may be able to get

You may be able to get:

• a better basic State Pension based on your husband's National Insurance record rather than on your own record
• bereavement benefits based on your late husband's National Insurance record
• statutory payments like Statutory Maternity Pay - these are based on what you earn, not on your contributions
• non-contributory benefits like Child Benefit

State benefits you won't be able to get

Reduced rate National Insurance contributions don't count towards:

• contribution-based Jobseeker's Allowance
• contribution-based Employment and Support Allowance
• the basic State Pension
• additional State Pension
• bereavement benefits

• National Insurance and state benefits

Effect on National Insurance credits and Home Responsibilities Protection

If you're a married woman (but not a widow) who has chosen to pay reduced rate contributions, you won't normally be entitled to National Insurance credits for any week covered by your 'Married Woman's Reduced Rate Election'. However there are exceptions, for example if you've been wrongly imprisoned or you are caring for a child or someone who is sick or disabled. Find out more about National Insurance credits by following the first link below.

Up to 5 April 2010, some people who were caring for others qualified for Home Responsibilities Protection. However, you were not entitled to Home Responsibilities Protection for any year where you had a reduced rate election in effect at the start of that year. Find out more about Home Responsibilities Protection by following the second link below.

• National Insurance credits

• Home Responsibilities Protection

Deciding whether to cancel an election

You can cancel your election at any time. If you do, you'll have to:

• pay the full rate of Class 1 contributions if you're an employee
• start paying Class 2 contributions if you're self-employed

Possible advantages of cancelling an election

It may be worth your while cancelling your election because you might:

• qualify for contributory benefits
• get the State Pension, or a better State Pension, in your own right
• be eligible for National Insurance credits
• be able to pay voluntary Class 3 contributions to help improve your basic State Pension

• Do you need to top up your National Insurance contributions?

Effect on pay - employees earning between £107 and £146 a week

If you earn between £107 and £146 a week (2012-13 tax year) you don't pay - but are 'treated as having paid' - Class 1 contributions. Cancelling your election will cost you nothing in terms of additional contributions but will help you build up entitlement to benefits such as the basic State Pension.

Example - Marie earns £100 a week and has an election in place. She doesn't pay any reduced rate Class 1 contributions on that amount, but is treated as paying reduced rate contributions. These contributions don't count towards contributory benefits.

If she cancels her election, she won't have to pay any full-rate contributions on her earnings but will be treated as paying full-rate contributions. These contributions will however count towards contributory benefits.

Effect on pay - employees earning more than £146 a week

If you earn between £146 and £817 a week, you pay full-rate Class 1 contributions of 12 per cent on earnings between these amounts, rather than reduced rate contributions of 5.85 per cent.

You also pay an extra 2 per cent on all your earnings over £817 whether or not you have an election in place.

Example - Sarah earns £350 a week and has an election in place. She pays reduced rate Class 1 contributions of £11.93 (£350 - £146 x 5.85 per cent). Her contributions don't count towards contributory benefits.

If she cancels her election, she'll pay full-rate contributions of £24.48 (£350 - £146 x 12 per cent) - that's £12.55 a week more in contributions but these will count towards contributory benefits.

Effect on pay - self-employed

Unless you apply for, and are granted, a 'small earnings exception' you will have to pay Class 2 contributions - follow the link below for more information. The weekly rate for the 2012-13 tax year is £2.65.

Points to consider before deciding

There are some things to consider before you decide, including:

• when you will reach State Pension age and whether you'll be able to earn a worthwhile basic State Pension in your own right - follow the link below for information on how you qualify for the State Pension and important changes that took place from April 2010
• how many 'qualifying years' you already have and the amount of basic State Pension you are already entitled to - follow the link below for information on how you qualify for the State Pension
• how old your husband is - up to 5 April 2010, if you didn't have enough qualifying years to get 60 per cent of a basic State Pension, you may have been able to get a basic State Pension based on your husband's contributions if you and your husband had reached State Pension age and your husband had also claimed his pension - but from 6 April 2023 you won't have to wait until your husband has claimed his State Pension before you can claim a basic State Pension based on his contributions - follow the link below to find out more
• if appropriate, whether you're willing to pay more in contributions

• Qualifying for a basic State Pension (pensions and retirement planning section)

Getting a State Pension forecast to help you decide

HM Revenue & Customs (HMRC) recommends you get a State Pension forecast to help you decide whether to cancel your election.

The forecast will tell you:

• how much basic State Pension you're entitled to based on your current National Insurance contributions record
• how many qualifying years you could build up before you reach State Pension age if you start paying full-rate Class 1 contributions or Class 2 contributions
• how much basic State Pension you could get by doing this

• Getting a State Pension forecast (pensions and retirement planning section)

How to cancel your election

If you want to cancel your election you'll need to fill in:

• form CF9 if you're a married woman - follow the first link below
• form CF9A if you're a widow - follow the second link below

Or you can call the National Insurance Enquiries for Individuals Helpline on 0845 302 1497. The helpline is open from 8.00 am to 5.00 pm, Monday to Friday except bank holidays.

Send your form to HMRC at:

National Insurance Contributions Office
Benton Park View
Newcastle upon Tyne
NE98 1ZZ

You can start paying full-rate Class 1 contributions or Class 2 contributions from the beginning of the week following the one in which you tell HMRC that you want to cancel your election - or from the beginning of any later week in the same tax year.

Remember that once you cancel your election you can't change back - unless you tell HMRC before the date the cancellation comes into effect.

• Married woman's application for a certificate of election of reduced liability or change to full liability (PDF, 87K) Opens new window

• Widow's application for a certificate of election of reduced liability or to change to full liability (PDF, 84K) Opens new window

• Help with PDF files

More useful links

• Employee tax and National Insurance

• Voluntary National Insurance contributions - the basics

• Married Couple's Allowance (includes civil partnerships)