A major change to National Insurance (NI) payments comes into force today which will boost the pay packets of workers across the UK. From Wednesday, July 6, the threshold at which people make NI contributions will increase.
Starting thresholds for National Insurance payments will rise from £9,880 to £12,570 from today. The move follows a controversial 1.25 percentage point increase in NI in April, to help pay for health and social care, which came amid a string of other bill hikes, including a jump in the energy price cap.
Today's change means that people will be allowed to earn a higher salary before they start paying NI contributions. It is hoped the move will ease the cost of living crisis for those struggling with bills, but critics have warned that the change will not make a huge difference to monthly take-home pay.
