National Insurance rethink will make the poorest 63p a month better off!

It has been calculated that Britain’s poorest 3m households will be as little as 63p a month better off under Prime Minister Liz Truss’s plans to cut National Insurance (NI) contributions. With Chancellor Kwasi Kwarteng expected to reverse this year’s 1.25% NI increase in his mini Budget, the Institute for Fiscal Studies (IFS) analysis also shows that the richest households will benefit by £150 a month. Those in households with the average UK household income will save about £20 per month. Tom Waters, a senior research economist at the IFS, said people earning more than £100,000 would benefit the most. He added that there are “more progressive ways to cut tax,” such as raising the income tax personal allowance. Tony Wilson, director of the Institute for Employment Studies, said the potential changes to NI contributions would be a “tax giveaway to relatively high earners.”

The Times

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