The UK has a comprehensive social security system, funded from general taxation and from National Insurance (NI) payments. When you start work in the UK, you must obtain an NI number, which will be used as a reference number for the social security system. The number can be obtained from the Department for Work and Pensions (England, Scotland and Wales), or the Department for Social Development (Northern Ireland).

The social security system provides state benefits for those unable to work due to illness or industrial injury, as well as unemployment, maternity, childcare, disability and carer benefits. It also administers retirement pensions. Eligibility for the state retirement pension is currently from age 65 for men and 60 for women, but this is being equalized to 65 for both men and women from 2010 onwards. Most families with dependent children are eligible for Child Tax Credits, while employees who are on low-incomes may qualify for Working Tax Credits. All benefits are means-tested.

If you have not lived in the UK and paid NI contributions before, you will not normally be eligible for benefits that are based on these contributions, such as maternity allowances and the retirement pension. However, people who have paid the equivalent of NI contributions in another country may qualify for some benefits in the UK. You may also be eligible if you have been working abroad for an employer based in the UK and have paid NI contributions during this time. These conditions apply only to some types of benefit, and only to nationals of European Economic Area (EEA) countries and those that have a social security agreement with the UK.

If there is a limit or condition on your stay in the UK you will not normally be eligible for those benefits which are not based on NI contributions, such as statutory sick pay, child benefit and council tax benefit. You may however be eligible if you have exceptional leave to remain in the UK, if you are a national of an EEA country who has recently been employed or self-employed in the UK, or if you have been living in a country that has a social security agreement with the UK.

More information about eligibility for benefits is available from the Department of Work and Pensions website.