What is the money we pay towards NI used for?
The monies raised by NICs are used to fund various state benefits, in particular the State Second Pension. NI goes into a government holding account, and is used to pay for government benefits, such as living allowances for the unemployed, housing benefits, UK social security etc. Unfortunately, non-residents are unable to claim for these benefits, however all UK taxpayers are entitled to use the National Health Service (NHS) for free. The government does not allow cash refunds for NICs so it is best to think of it as another tax.
