NICs pay for certain state benefits only (see ¶12000). Many benefits are based on need or circumstantial conditions, with no link to past contributions paid. Instead, they are based on some other link to the system, such as residence, and they are often subject to income limits or means testing. These non-contributory benefits are funded from general taxation and include:
•Child Tax Credit;
•Christmas Bonus for pensioners;
•Cold Weather Payments;
•Council Tax Benefit;
•Disability Living Allowance – being phased out and replaced by Personal Independence Payment;
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