National Insurance rise is ‘daylight robbery’ says Sir John Redwood
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Chancellor Rishi Sunak plans to push ahead with his controversial plans to put up National Insurance in order to raise £12billion to fund social care and the NHS. However, his proposals will mean some have to fork out more than others.
The controversial plans will affect anyone who earns more than £184 a week and pensioners will be asked to contribute to the new Health and Social Care levy too.
It will mean one million more people will struggle to meet the cost of living from the spring.
Campaigners including experts at think tank the National Institute of Economic and Social Research claim that nearly a third (30 percent) more British households will find it difficult to make ends meet.
They say it will add further pressure to households who are already finding it tough because of rising inflation and higher energy bills.
And some groups will find their finances squeezed more than others.
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How much will National Insurance rise from April 2022?
The new rate of 13.25 percent will apply to both employed and self employed workers.
An employee earning £20,000 a year will have to fork out an extra £130.
Anyone on a £50,000 salary will have to find an additional £505.
Not everyone has to pay National Insurance, with individuals earning £9,564 or less a year usually exempt.
However, workers who have reached state pension age will be expected to contribute, although they have been exempt in the past.
These plans have infuriated pensioners, many who have taken to Express.co.uk to voice their anger.
PaulC said: “Not only are they reducing the state pension (in real terms) they are also charging pensioners the additional NI.”
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National Insurance contributions are mandatory for those aged 16 or over.
Research carried out by Income Tax UK found that those earning an average salary of £30,000 will lose nine percent of their salary to National Insurance.
Those earning £50,000 will see 10 percent of their earnings lost to National Insurance.
However, Britons on a salary of around £100,000 will see only seven percent of their salary go towards National Insurance.
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