To be worried about the Nat Insurance Increase?

[Folicky]

I work in the NHS, recently had a pay increase (not in line with inflation) and now this will come and take it away and more. I needed that increase, it gave me a bit more room rather than having money pressures. Feel very harsh despite me knowing what it is for (Covid) but then all those PPE contracts to mates. Feeling a bit shafted

I've not had a payrise in years. Really worrying now about the NI increase, on top of the predicted rise in gas & electric, food prices increasing and our council was looking at a potential 7% council tax rise - I've not been back to look for any final decision as it's too anxiety inducing to think about at the moment.

@Theworldisfullofgs In the Cayman Islands or somewhere similar, presumably...

I'm also finding it hard work when I encounter people one generation up from me gloating about their big fat final salary pensions, massive house price rises, swanky campervans, and multiple overseas holidays (pre-COVID), patting themselves on the back for being so incredibly clever.

And I'm beyond seething at the selfishness of the Red Wall, for having helped put this bunch of hyenas into power. I've come to expect this level of disdain for the poor in many parts of the south, but HARTLEPOOL?! Just to name one example. Ye Gods. Your ancestors would be spinning in their graves. Serves you all right if you end up getting hammered under all these tax rises - just remember, you're getting what you voted for....(Goes without saying that I have lots of sympathy for those who didn't vote these miscreants into power, though not much for those who weren't ill on the day yet didn't vote...)

(And I grew up in the North East, though not in one of those Red Wall constituencies, thank God.)

We're hopefully going to be all right (just), but it does mean I won't be able to give up the second job any day soon!

Yep worried here. Our rent has gone up £50 in March. Plus the council tax will. The train fares are going up. Plus the energy bills and food and the NI. We will lose a minimum of £100 a month but realistically it will be more.

BTW although the media always quotes the 2.5 percentage points increase, that is actually a 10% increase in NI for all of us (except the super rich).

that is actually a 10% increase in NI for all of us (except the super rich).

yep

Yanbu although I'm far more worried about the cost of energy. I would advise anyone feeling the pinch to start making preparations now and think about buying electric blankets and hot water bottles etc.

I know that perhaps that seems alarmist but better to be prepared as I fear many people will not be able to afford to heat their homes properly next Winter.

@dorkfink

i can't see them cutting taxes but perhaps a more equal spread

Why? Blair/Brown didn't do that in 13 years so not sure why you'd expect a future Lab govt to do it.

@FanGirlX

Rishi could try to recover a few billion of the covid support/loans that was given out without proper checks because he screwed it up and didn't put proper checks in place.

This is an absolute scandal and heads should be rolling.

It's an even bigger scandal that Rishi excluding 3 million self employed/freelancers from the support they desperately needed too!

Ironically, Rishi's pathetic excuse about excluding 3 million people was that they were a fraud risk!!

He really shouldn't be allowed with libelling huge numbers of innocent struggling freelancers as a fraud risk, when at the same time, handing over billions of pounds in bounce back loans and furlough without any checks.

i can't see them cutting taxes but perhaps a more equal spread

Why? Blair/Brown didn't do that in 13 years so not sure why you'd expect a future Lab govt to do it

Blair isn't in power, hardly anyone who served in his Govt is in Starmers front bench.
Brown did cut the starting rate of tax to 10%, unfortunately he raised it back up again.

Labour oppose this NI increase, so thats a tax cut over the tory plans and the idea is to reduce tax reliefs on the wealthy to fund social care etc.

Why? Blair/Brown didn't do that in 13 years so not sure why you'd expect a future Lab govt to do it.

I’m not sure that’s a helpful view. How long after that government will that argument be used? I always think it’s a bit pointless when people say “well the Tories did X in the 80s” or “labour did this 15 years ago”.
Of course it shows a general political view, but I don’t think it indicates actual policy now you have totally different leaders and a lot of different MPs. Would you think this irrespective of what Keir Starmer and labour actually say? “Well Blair didn’t, so why would you???” Blair was first elected nearly 25 years ago.

(And I’d say the same in 25 years if someone said “well, don’t you remember what Boris did, I don’t know why you’d expect this Tory leader to have any different policies.”)

The NI I think is going to be about an extra £70/month for us but we are in the fortunate position that I got a 10% payrise this year and we are on a fixed contract for energy until April 23 so it’s not a big deal for us. Overall I think it’s grim. They could have used it as an opportunity to make threshold for tax & NI consistent to protect those with least and they should have added any increase to tax rather than NI so it applies to unearned income

@Alexandra2001

Don't get why the poorest workers have to pay more BUT the wealthy can use ISA's to avoid paying any sort of tax on investment income (Google ISA wrapper)

So the claim that the Tories always look after their own appears, in this case, to be true.

It's incredibly obvious why! Tories favouring the groups most likely to support them.

@SickAndTiredAgain

Why? Blair/Brown didn't do that in 13 years so not sure why you'd expect a future Lab govt to do it.

I’m not sure that’s a helpful view. How long after that government will that argument be used? I always think it’s a bit pointless when people say “well the Tories did X in the 80s” or “labour did this 15 years ago”.
Of course it shows a general political view, but I don’t think it indicates actual policy now you have totally different leaders and a lot of different MPs. Would you think this irrespective of what Keir Starmer and labour actually say? “Well Blair didn’t, so why would you???” Blair was first elected nearly 25 years ago.

(And I’d say the same in 25 years if someone said “well, don’t you remember what Boris did, I don’t know why you’d expect this Tory leader to have any different policies.”)

Whilst I agree in general terms, I'll await Labour's next GE manifesto with baited breath to see what their plans are.

@Alexandra2001

i can't see them cutting taxes but perhaps a more equal spread

Why? Blair/Brown didn't do that in 13 years so not sure why you'd expect a future Lab govt to do it

Blair isn't in power, hardly anyone who served in his Govt is in Starmers front bench.
Brown did cut the starting rate of tax to 10%, unfortunately he raised it back up again.

Labour oppose this NI increase, so thats a tax cut over the tory plans and the idea is to reduce tax reliefs on the wealthy to fund social care etc.

By the same token, though, it has been the Tories (with a kick up the bum from the libdems during the coalition) that massively increased the tax free personal allowance far beyond inflation/RPI or other indexes over the past decade or so. That's been a real help to lower paid and it has taken huge numbers of people out of paying income tax.

But yes, Brown playing around with the 10% was crazy nonsense. Just like him reducing small company corporation tax starting rate first to 10% then to zero, then back up again a couple of years later. What was he thinking??

@Lauren1983

Yanbu although I'm far more worried about the cost of energy. I would advise anyone feeling the pinch to start making preparations now and think about buying electric blankets and hot water bottles etc.

I know that perhaps that seems alarmist but better to be prepared as I fear many people will not be able to afford to heat their homes properly next Winter.

Unfortunately, that won't help those of us who already rely on these measures 🙁

It's an even bigger scandal that Rishi excluding 3 million self employed/freelancers from the support they desperately needed too!

@user1497207191

And don't forget those approximately 3 million people who are still in receipt of legacy benefits (typically vulnerable, with disabilities or a caring role), who have this far been denied the £20pw uplift that claimants of UC were given. This has penalised them to the tune of around £1500 over 18 months.

@daimbarsatemydogsbone

Which is actually a bit of a fib, because I'm over pension age, so don't pay NI, and it won't affect me. But I'm still bloody angry about it You will pay from 2023 if you are over Pension age and working.

Bloody typical. I've paid NI for 49 of my 66 years, and still they want more! Actually, it's 51 years if you count the few pence I paid on the £1.90 I got for my Saturday job.

I'm quite surprised by that, tbh. Traditionally, there's always been a belief that old people vote Tory so the Tories tend not to do things that make them worse off. And there are loads of pensioners still working.

I'm very part time, so only a small proportion of my wages is NI-able, but I'll still be about £28 a month worse off, if rates & thresholds stay the same as for 22/23.

@FourTeaFallOut

Council tax can rise by any figure, energy and NI all coming at the same time

The council tax rises are capped at 3%, aren't they?

3% of the council tax on a band C property where I live is another £5 a month. It's like death by a thousand cuts.

All these contracts for useless equipment and billions of pounds worth of fraud written off.

I'm quite surprised by that, tbh. Traditionally, there's always been a belief that old people vote Tory so the Tories tend not to do things that make them worse off. And there are loads of pensioners still

It wasn't in the initial proposal iirc. I think it was added because there was such anger at the ageism of the plan, so they were trying to throw something in that still left most pensioners exempt but that they could argue meant actually the burden wasn't falling solely on the working age population.

It's like death by a thousand cuts.

Absolutely. It's £10 a month here, £50 a month there. When I add it all up, it's a huge amount. I actually earn a decent salary, although I'm a single parent but it's going to decrease my disposable income. Which in turn will hit the local economy because I'll stop spending on non essential services and retail.

3% of the council tax on a band C property where I live is another £5 a month. It's like death by a thousand cuts

Yeah, I know. I was just thought that the council were limited by how much they can increase the tax, turns out 3% isn't the upper limit and I was wrong. I didn't mean to suggest that the increase was insignificant.

Bang goes a nice sit down for an occasional coffee and toasted tea cake treat.

The money just wont be there. Not for me anyway :(

It's incredibly obvious why! Tories favouring the groups most likely to support them.

That used to be the case. Then they read the concurrent thread on this forum about voting Tory, and realised that people will vote for them even if they shaft them repeatedly. After all, if you really will vote Tory no matter what, then you are one person the Tories really don't give a flying fuck for.

It's only the threat of being removed from office that ever concentrates a politician to deliver. If you remove that by idiotically telling them in advance it doesn't matter what they do in office, then you really shouldn't be surprised to awake one morning with half an inch of Tory cock up your back passage.

Still, "but Corbyn" eh ?

@Guacamole001

Bang goes a nice sit down for an occasional coffee and toasted tea cake treat.

The money just wont be there. Not for me anyway :(

Exactly. The extra costs of essentials are going to come out of disposable income. I'm doing an audit this week and working out where I can cut non essential spend.