To think 2p NI cut is a joke

[Outofideas79]

Just that really. My rent is going up 20% my council tax 7%. My car insurance is going up 50%. My home insurance went up 10%. I'm shared ownership and dread remortgaging. I'm going to be paying £15 pm extra for water.

My wage went up 3.5% last year. Before that it had been frozen. I barely noticed the last income tax decrease in January. 2p is going to do nothing for ordinary households, and actually benefits low income households the least.

Context. I'm a single Mum.

The guardian says "for those earning £20,000 from employment, the new 2p cut is worth £148.60 a year"

I'd rather have that £148.60 than not have it so I don't see the issue

Can someone explain to me what NI payments are used for?

And what small gain for the individual means in the wider picture? I mean will there be losses in terms of what the government uses NI for?

I’d rather not have the cut and the nhs get more funding 🤷🏻‍♀️. Maybe it should have been cut only for people under a certain income. But that is then expensive to implement apparently.

Well we all have to pay for Brexit and Liz Truss, so its hardly surprising there isn't much money for the llittle people since those who have more money than they could possibly need have to keep getting richer.

Its the will of the people.

As regards the NI paid it all goes into the same pot as other tax. It isn’t set aside for anything in particular.

When you pay NI you are making “contributions” which add up to mean you are eligible for certain benefits the main one state pension.

cost of it is about £10 billion. I don’t know enough about the economy to know what that means for government- sounds large but not sure what it could realistically have funded instead Guardian

What do you think about the tax thresholds being frozen so because of inflation, you end up paying more tax than you would have done if they had increased the thresholds in line with inflation?

Giveth with one hand, and taketh a lot more with the other.

I think that's rubbish. I did see a graph that showed how taxes are still higher than they were 5 years ago say. But still, I'd rather have the NI cut than not have it.