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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Gutted about NI rise

999 replies

CarryOnNurse20 · 07/09/2021 10:46

I know we need it and we have so much money to pay off. But we have been scrimping and saving after a hard couple of years. Every penny is accounted for from pay day to pay day. I’m a nurse and my pay has been capped/below inflation my whole career. And now the NI rise means any savings etc we have made will now be gone. I’m gutted.

OP posts:
VanGoghsDog · 07/09/2021 13:37

@Iwantcauliflowercheese

I know that most of you are unhappy, but for me with an elderly DH whose memory is going, it's a huge relief.
Why?
Feelingoktoday · 07/09/2021 13:37

It’s incredible on this post how many in-laws are rolling in it. Why aren’t parents of daughters also rolling in it? I think this needs a major Govt review into this inequality 😂 it’s just not on. Thank goodness I have sons so will also be rolling in it.

bagelsandoranges · 07/09/2021 13:37

No, people are aware of that.... but a significant proportion of the "squeeze" is to make sure those pensions continue to be paid. The fact is, they were never sustainable to begin with. But that didn't seem to matter at the time.

JassyRadlett · 07/09/2021 13:37

“Everyone else should pay for this, except me” is pretty much the flavour of the response here.

Really? Most people are saying it should go on IT and IHT not NI.

I’m in favour of it going on IT so everyone pays, but the poorer working aged people would pay a little less. Higher earners like me would pay more. Higher earning retirees with good occupational pensions or other income would contribute.

As I’ve said, I also support the reform of IHT due to the massive distortions of the asset bubble.

Realyorkshiretea · 07/09/2021 13:37

*make hay

lllllllllll · 07/09/2021 13:39

I’m waiting for @lllllllllll to explain why they’ve lied about what I’ve said?

@JassyRadlett I've already responded to you. I shall await your apology for calling me a liar.

BrozTito · 07/09/2021 13:39

No idea how that relates to my comment, user34543whatever?

JellyBabiesSaveLives · 07/09/2021 13:40

They should have increased the higher band NI rate - at the moment we pay 2% NI on earnings over 50,000. They could make that 12% to match the lower one; it’s bonkers that the rate goes down as you earn more.

And yes, that would result in me paying more, and that would be ok!

JassyRadlett · 07/09/2021 13:40

Why aren’t parents of daughters also rolling in it?

My parents are absolutely rolling it in while my in-laws have a modest house and low pension income, if that helps rebalance things.

VanGoghsDog · 07/09/2021 13:40

@amymorris01

Dont you pay for your state pension while your working? I dont think it is free.
Everyone gets it, even if they never work. You didn't exactly pay for or while working. Your NI today is paying current pensioners, it doesn't work like a savings scheme (some countries do it like that but we don't).
Ajl46 · 07/09/2021 13:41

@TheDailyCarbunkle

For the record I think the NI increase is madness. NI is a stupid idea anyway - it should all be tax and everyone should pay proportional to their assets and income.

But

I find the reaction to this very interesting.

With lockdown the attitude was 'it's necessary, we all need to do our bit' from the people comfortably sitting at home getting their food delivered. No thought for the low-paid workers still going out every day to keep the essentials of their life running, no thought for pensioners in care homes left despairing and confused by lack of family contact, no thought to the children left at home for months without school in abusive and neglectful homes.

Now that those people are themselves inconvenienced though, in the place it hurts most (the wallet) it's suddenly 'this isn't fair!' Where is the admonishment to do your bit, or the tutting about us protecting and providing for the elderly?

The NI increase is only until 2023 at which point it will become a separate levy which working people of pension age will also pay (currently they are exempt from NICs). That is a very sensible move.
MissyB1 · 07/09/2021 13:41

@GiantHaystacks2021

It's dreadful.

I'll never understand why people vote Tory though.
Talk about the turkeys voting for Xmas.

This!
listentomydeclaration · 07/09/2021 13:42

What does it mean for employers? Will employers pay more and have to make staff redundant as a result, to claw back the loss of money?

user1471505494 · 07/09/2021 13:42

Just who do you think should pay. Social care needs to be sorted and paid for. Boris might have said he wouldn’t raise taxes or NI but that was before this awful pandemic when nearly every sector in society has demanded money because they are all special cases. Boris is not a magician able to pull large amounts of money out thin air, neither are the other political leaders who seem very short of ideas themselves

MsJinks · 07/09/2021 13:42

‘Fund’

fizzylorri · 07/09/2021 13:43

It will hit the working poor- a description of people the government doesnt even acknowledge but absolutely exists. The increase might not sound like much but if you live day to day on your earnings its not good news.

lllllllllll · 07/09/2021 13:43

Talk about the turkeys voting for Xmas.

I'm not a Tory voter, but how is it turkeys voting for Christmas? I'm happy to pay more tax now to ensure I receive better social care when I'm older. Many people would welcome paying more taxes (like the Scandinavians do) if it means better healthcare, better social care, better education and so forth.

There are some very shortsighted people on this thread.

fromdownwest · 07/09/2021 13:44

@JellyBabiesSaveLives

They should have increased the higher band NI rate - at the moment we pay 2% NI on earnings over 50,000. They could make that 12% to match the lower one; it’s bonkers that the rate goes down as you earn more.

And yes, that would result in me paying more, and that would be ok!

Do you honestly think a taxation rate of 52% is fair and viable?
DynamoKev · 07/09/2021 13:44

[quote GertrudePerkinsPaperyThing]@DynamoKev well I’m talking as a whole and not individuals - these things can’t ever really be discussed at an individual level.

But those of boomer and the first part of the next generation (people born in the 60s - what are they? I thought gen x was the 70s born but might be confused) who have benefitted could easily give some of their money to younger people if they wanted![/quote]
Baby boomers - those born between 1946 and 1964.

could easily give some of their money to younger people if they wanted!

How would that work exactly?
I mean I plan to pass anything that's left on to my DD but do you mean other than family? How?

JassyRadlett · 07/09/2021 13:45

@lllllllllll I’m sorry - I misread that post as a similar one of mine and I got really angry because it’s a horrible, horrible accusation to make to anyone. I got it wrong, and I’m sorry.

Skinnytailedsquirrel · 07/09/2021 13:45

Someone on £20k is going to pay an extra £130.00, someone on £100k is going to pay an extra £1130. Hope this helps some of you who are complaining about only low payers being affected.

lllllllllll · 07/09/2021 13:45

@DynamoKev charitable giving?

BrozTito · 07/09/2021 13:45

Quite simply you expand the economy by investing in it and everybody and have the guts to ignore the scummy 90% of the media who wail about it being communism.

DynamoKev · 07/09/2021 13:47

Do you honestly think a taxation rate of 52% is fair and viable?
It would be too much if levied on everything, but it isn't.
It seems pretty fair and viable to me, and I'd be paying it too.

lllllllllll · 07/09/2021 13:47

I’m sorry - I misread that post as a similar one of mine and I got really angry because it’s a horrible, horrible accusation to make to anyone. I got it wrong, and I’m sorry.

@JassyRadlett you're right - kicking an old person out of their home to fund their social care is abhorrent. But there are people who think that's perfectly acceptable. I'm glad you're not one of them.