A reply to a parliamentary question from Steve Webb, pensions minister, showed that the number of people reaching their qualifying state pension age with more than their qualifying years of state pension contributions had risen by 70,000 to 430,000 in the tax year 2010 to 2011. In total, 6.2 million people were still paying NICS contributions despite achieving a full entitlement in 2008-9, the figures showed. They paid £10.6 billion in 2008-9, in that tax year – the latest for which estimates are available. This equates to £32 a week per person and is likely to have risen substantially in the most recent tax year, since the Government has dropped the number of years of contributions needed for a full pension to 30 from 44. Pensions expert Tom McPhail, from Hargreaves Lansdown, said the system was “fundamentally dishonest”. “The Government applies an employment tax which is notionally allowing you to qualify for a state pension.

However, when you have paid enough to get it, you still have to pay the tax,” he said. “This Government could get a lot of credit by repackaging this system so people can see what they are....Read more on todays story----> 430,000 workers pay £11bn too much National Insurance - Telegraph