Fostering and National Insurance

You pay National Insurance Contributions (NICs) to qualify for certain welfare benefits and the State Pension. There are two types of National Insurance for people who are self-employed, depending on their profits – Class 2 and Class 4.

National Insurance Record - If you would like to check your National Insurance record and how many contributions you have made, you can do so on the government's website, here.

Class 2 National Insurance cease when you reach state pension age.

Class 4 National Insurance stop from 6 April (start of the tax year) after you reach state pension age.

Class 2 NICs

When a foster carer registers as self-employed, they also register for Class 2 NICs. Foster carers can decide to pay Class 2 NICs voluntarily. For example, if they have £0 taxable profit or are below the small profits’ threshold, which maintains your national insurance record, access to the state pension and to be eligible for certain welfare benefits.

Note: For 2023-24 Class 2 NICs are £3.45 per week (£3.45 per week for 2024-25). There is an option when completing the tax return form to pay the Class 2 contributions voluntarily which is £179.40 (2023-24).

Class 3 NICs

Foster carers can apply for a NI credit for each week they approved as a foster carer. Foster carers can apply for NI credits at the end of each tax year. They contribute to state pension only.

Apply for National Insurance credits on the government's website if you’re a parent or carer, here.

Class 4 NICs

Class 4 NICs must be paid if you make a certain amount of profit from your self-employment

Note: There have been several changes to Class 2 and 4 NICs following the government's Autumn statement 2023 and Spring budget 2024.