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Monday, August 15, 2022

National Insurance change means millions to get £330 pay rise – eligibility checker | Personal Finance | Finance

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Alice Haine, personal finance analyst at Bestinvest, said: “National Insurance (NI) bills were pushed up by 1.25 percent in April when the Government rolled out a new Health and Social Care levy to bolster the NHS and social care, which had been stretched thin by the pandemic.

“It meant that the main rate for employees rose to 13.25 from 12 percent, with the increase coinciding with the escalation in the cost-of-living crisis after Russia’s invasion of Ukraine sparked a surge in food, fuel and energy prices – delivering a double blow to the wallets of everyday Britons.

“However, from July 6, the threshold at which NI kicks in increases from £9,880 (the increase introduced on April 6, up from the previous £9,568) to £12,570, bringing it in line with the income tax threshold, giving 2.2 million workers a complete break from NI payments, though they will still receive all the benefits that come with paying the levy.

“This equates to a saving of over £330 on average, when compared to the previous three months of National Insurance contributions, with the cash boost also set to benefit a further 30 million typical employees earning over the new £12,570 threshold, including higher earners.”

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