Nearly 30 million people will see a boost in their next payslip this month when the National Insurance (NI) threshold increases from £9,880 to £12,570 from Wednesday. The change means a typical employee will gain an extra £330 this year from July 6 and could help ease the pressure of mounting bills amid the cost of living crisis.
The move follows a controversial 1.25 percentage point increase in NI in April, to help pay for the Health and Social Care Levy. Seven in 10 (70%) workers who pay National Insurance contributions (NICs) will pay less following the change, even after accounting for the new levy, the UK Government said previously.
Of those who benefit from the threshold increase, 2.2 million people will be taken out of paying NICs altogether, it added. However, Alice Haine, personal finance analyst at investment platform Bestinvest, said a £330 saving “won’t stretch far when you realise that only equates to £27.50 a month”.
