The exemption from National Insurance for people who work past State Pension age cost the Treasury £1.2bn in 2025/26, according to analysis by the financial adviser NFU Mutual reported by GB News.
NFU Mutual says this makes the relief an option for a Chancellor looking to raise money. This is an adviser's analysis, not a leak or a government plan. No outlet reports that the government is considering scrapping the exemption, and the Treasury has not said it is.
NFU Mutual's figures:
- The exemption cost £1.2bn in 2025/26, up from £840m in 2020/21, a rise it puts at 43%.
- 899,000 people benefited in 2025/26, against 597,000 in 2020/21.
- Working pensioners could pay about £994 more a year if the relief were scrapped.
On NFU Mutual's own numbers, the 43% rise holds up. The increase from £840m to £1.2bn is 42.9%. The £994 figure has not been independently checked.
Employees currently pay 8% National Insurance on earnings between £12,570 and £50,270, and 2% above that, NFU Mutual says. The State Pension age began rising from 66 in April 2026 and reaches 67 by April 2028, GB News reports.