Some workers will win and others will lose as a result of changes to National Insurance contributions this year. Chancellor Rishi Sunak revealed today (March 23) that the threshold at which workers pay NI will rise to £12,570 in July.
That’s an increase of around £3,000 from the current starting point of £9,568, and means anyone earning less than the new amount will pay nothing. According to the Treasury, this will save a “typical” employee around £330 a year, and will benefit nearly 30 million workers.
But that comes after previous changes revealed last year, which will see contributions on earnings over the threshold increase by 1.25 percentage points in April, from 12% to 13.25%. At the time, ministers said the hike would be used to help shore up the finances of an overstretched NHS and social care sector.
