Martin Lewis has issued an update to every household earning under £50,000 a year, following UK Chancellor of the Exchequer Kwasi Kwarteng's mini-budget on Friday.
The MoneySavingExpert founder has been regularly sharing updates and advice amid the worsening cost of living crisis. The financial expert has been providing tips for people to save money as household budgets are stretched increasingly thin.
As reported by The Mirror, Lewis uploaded an "explainer" video informing people how they will be impacted by the Chancellor's changes. In the video, he explains how households will be affected by Stamp Duty, National Insurance and Income Tax.
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Talking about Income Tax, the MoneySavingExpert founder explained that the basic rate has been lowered from 20 per cent to 19 per cent. At the moment, workers begin paying Income Tax once their earnings hit £12,570 — but this may change when the budget is unveiled in 2023.
While this means that those earning this amount or more will get more money to take home, Lewis explained: "For anyone earning £50,000 and over, you don't really get any more gain. The gain is really on the income between £12,570 and £50,000".
The UK Government also unveiled a National Insurance cut for millions across the nation that will come into effect on November 6. The NI increase introduced by previous Chancellor Rishi Sunak in April will be reversed within weeks.
The government will reduce National Insurance from 13.25 per cent back down to 12 per cent, which is what it was prior to the April increase. Approximately 28 million people across the UK will reportedly get an extra £330 a year each on average.
Part of the UK Government's "new growth plan" is also to cut Stamp Duty, with the nil rate band increasing from £125,000 to £250,000. As a result, approximately 200,000 more people each year will be able to purchase a home without needing to pay Stamp Duty.
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