National Insurance number

National Insurance number (often abbreviated NI number or NINO) is a unique personal identifier used in the United Kingdom to administer the National Insurance or social security system. It is also used for some purposes in the UK tax system. The number is described by the UK government as a "personal account number".

History

The concept of the National Insurance number was introduced as part of the National Insurance Act 1911, under the government of David Lloyd George. Its purpose was to act as a unique identifier for individuals within the National Insurance system, which was designed to provide unemployment benefits and sickness benefits to workers.

Format

A National Insurance number is made up of two letters, six digits, and a final letter, which is always A, B, C, or D (e.g., QQ 12 34 56 C). The format of the number is designed to prevent easy fraud, but it does not encode any personal information about the individual.

Uses

The primary use of the National Insurance number is in the administration of the National Insurance contributions and benefits. It is also used within the HM Revenue and Customs (HMRC) systems to ensure that income tax and national insurance contributions are properly recorded against an individual's record. Beyond tax and social security, the NI number is also used for certain other government services, including:

• Applying for a student loan
• Opening a bank account
• Registering with a GP surgery
• Applying for a driving license
• Employment purposes

Obtaining a National Insurance Number

Individuals typically receive a National Insurance number just before their 16th birthday if they live in the UK and their parents or guardians receive Child Benefit for them. Those who move to the UK or did not receive a number for any other reason must apply through the Department for Work and Pensions (DWP). The application process involves proving one's identity and the right to work or study in the UK.

Security and Fraud Prevention

Given its importance in the financial and social welfare systems, the security of National Insurance numbers is a significant concern. Individuals are advised to keep their number secure and share it only where necessary. The government has measures in place to detect and prevent fraudulent use of NI numbers.

International Comparison

Many countries have similar systems for identifying citizens or residents for tax and social security purposes. For example, the United States uses the Social Security number (SSN), and Canada uses the Social Insurance Number (SIN).

See Also

• Social Security number
• Social Insurance Number
• HM Revenue and Customs
• National Insurance