Politics

National Insurance rise slammed as families to be ‘thousands of pounds worse off’



Boris Johnson’s Tory government has been slammed for increasing National Insurance payments as people face mounting living costs.

The SNP hit out as families across the country will be “thousands of pounds worse off” due to the hike in costs.

National Insurance (NI) will rise by 1.25 per cent from today, with workers now forced to pay 13.25 per cent.

The rise comes after the UK’s energy regulator increased the price cap, meaning millions are now paying hundreds of pounds more for their electricity and gas.

For those on default tariffs who pay by direct debit the cap increased by £693 from £1,277 to £1,971.

While, prepayment customers saw a bigger jump, with their price cap going up by £708, from £1,309 to £2,017.

The regulator was forced to hike the energy price cap to a record £1,971 for a typical household as gas prices soared to unprecedented highs.

SNP Fair work and employment spokesperson Chris Stephens said families are facing a tough time.

He added: “The Tory cost of living crisis is spiralling out of control because of the damaging decisions imposed by Westminster, including Tory austerity cuts, tax hikes and Brexit.

“At a time when families are going to be thousands of pounds worse off, it is disgraceful that the Tories are hammering people’s incomes further by raising regressive taxes like National Insurance and VAT, slashing Universal Credit by £1040, and scrapping the triple lock on pensions.

“In stark contrast, the SNP government is using the powers it has to put money into people’s pockets by doubling the Scottish Child payment, raising Scottish benefits by 6%, and ensuring the lowest average rates of council tax in the UK – alongside the £150 rebate.”

While, Lib Dems leader Ed Davey said families are struggling to make ends meet as it is.

He added: “Families are facing soaring energy bills and desperately need a tax cut to help them make ends meet.

“But instead of helping, the Conservatives are breaking their promises by raising taxes again and again.”

During his Spring Statement Chancellor Rishi Sunak attempted to ease the blow by raising the threshold in which people start paying NI to £12,570, however it doesn’t come into effect until July 6.

From today the threshold has risen from £9,568 to £9,880.

It’s believed the Sunak announced could save people around £300-a-year.

The rise of 1.25 per cent will be in place for a year, with the rate going back to its 2021/22 level for the 2023/24 financial year, and the income stream replaced by a new health and social care levy of 1.25 per cent.

The proposal is predicted to raise £12 billion annually.

The Record has contacted the UK Government for comment.

How much will I pay under the new plans?

The amount of NICs you pay depends on your salary, however workers earning under £9,880 don’t have to pay and won’t have to pay the new levy.

Salary and new National Insurance Contribution

  • £20,000 annual pay: NIC now – £104; NIC from April 6 – £112; NIC from July 6 – £82
  • £30,000 annual pay: NIC now – £204; NIC from April 6 – £222; NIC from July 6 – £192
  • £40,000 annual pay: NIC now – £304; NIC from April 6 – £333; NIC from July 6 – £303

  • £50,000 annual pay: NIC now – £404; NIC from April 6 – £443; NIC from July 6 – £413

  • £60,000 annual pay: NIC now – £423; NIC from April 6 – £472; NIC from July 6 – £443

  • £70,000 annual pay: NIC now – £440; NIC from April 6 – £499; NIC from July 6 – £470

  • £80,000 annual pay: NIC now – £457; NIC from April 6 – £526; NIC from July 6 – £497

  • £90,000 annual pay: NIC now – £473; NIC from April 6 – £554; NIC from July 6 – £524

  • £100,000 annual pay: NIC now – £490; NIC from April 6 – £581; NIC from July 6 – £551

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