What essential services are funded by National Insurance Contributions in the UK?

National Insurance Contributions, or NICs, are a key part of the UK's social security system, established in 1911. Think of it as a collective pot of money that working people pay into throughout their lives. This money is then used to fund specific essential services. The most significant of these are the National Health Service, or NHS, which provides healthcare to all UK residents, and the state pension, which provides income to people after they retire. While other services like schools and the police are vital, they are primarily funded through general taxation – that is, income tax, VAT, and council tax. So, when you think about National Insurance, remember it's primarily about ensuring healthcare and retirement security for everyone, making the NHS and state pension the correct answer. It's easy to see why some might think education or the police are funded by NICs, as they are essential public services, but the funding model is different.