Low-income taxpayers will have roughly £300 more a year from July 6 as changes to National Insurance (NI) come into effect. However, it means others will pay more.
The shift affects the rate at which people pay NI and was announced by Chancellor Rishi Sunak at the Spring Statement in March. It came in a bid to lessen the impact of the decision to raise income tax contributions by 1.25 percentage points - which is about 10% - amidst the cost of living crisis.
The original rise means workers now give up 13.25% of their earnings to National Insurance, rather than 12%, up to £50,270. On earnings above that, the rate is rising from 2% to 3.25%.
