Background to reduced NIC rate
Until 11 May 1977 a married woman or a widow could elect not to pay full rate National Insurance contributions (NIC) and, instead pay a small rate which originally stood at only 4d. a week (pre-decimal currency) which only covered her for certain benefits if she suffered an accident at work. Among the older generation this is still referred to as the ‘fourpenny stamp’. The reduced rate applies to those earnings which fall between the NIC threshold and the upper earnings limit (UEL). It was fairly common for women getting married to make an election not to pay full rate NIC on the basis that they were only going to work for a relatively short period before staying at home to raise a family.
From 11 May 1977 the NIC position of married women and widows changed. Since that time, they are treated no differently from any other worker. There are however transitional rules which are still in place which allow those
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