National insurance has come a long way since it was first introduced 110 years ago. Has it strayed too far from its original purpose, or does it need to go further?
When national insurance (NI) was first introduced in 1911, it was more of an insurance scheme, of sorts. Employers were required to buy stamps from the post office and affix them to employees’ national insurance cards. These would act as proof that the individual was entitled to benefits once their employment ended.
The unemployment benefit element was administered by government, but health and pension insurance was provided by ‘approved societies’, including friendly societies and some trade unions.