Personal allowance frozen - yet 2p off National Insurance

[MikeRafone]

AIBU to think that instead of reducing the tax on NI that the personal allowance raising a couple of hundred pounds would be better for less well of families and pensioners?

PA is frozen until 2028 whilst the last budget knocked off 2p on NI and suggested the same will happen today another 2p

whilst income tax will rise for many as NMW rises in April by £1.01

AIBU no PA shouldn't rise and 2p is ok of NI
YANBU PA should rise and leave NI as it is

You’re right that raising the personal allowance would be better for less well off people and pensioners, but they generally have benefit entitlements of some kind and so have had quite a bit of help already, which I don’t begrudge. This NI reduction is something that will help working people in particular and I think that is really needed right now. I am generally left leaning but not every policy decision has to be about income redistribution.

It's not so that most pensioners get benefit help. Many (those with very small private pensions) are drawn into the tax bracket and still pay full council tax, food bills, higher than average utility bills (as they are at home more), full TV licence etc.

I worry that so many people see pensioners as highly paid freeloaders, off on cruises several times a year and living it large. Of course there will be some like that but so many are scraping by.

And don't forget that women who are now reaching pension age were not allowed to contribute into a pension scheme if they worked part time, or had been with an employer less than two years.

The triple lock sounds generous until you realise 8.5%of less than £11k pa doesn't amount to much.

I'd sooner see a tax break for lower income people, whatever their stage of life.

I am generally left leaning but not every policy decision has to be about income redistribution.

To increase the economy it is better to have many people with some money in their pockets than just a few people with a lot of money to spend

I agree with this.

I think the NI change is better (hated the increase) as it affects only working people. There's no benefit to those with unearned wealth. I'm one BTW.

It's a way of giving something to workers, not pensioners, and I think it's being done wholly deliberately and for that reason

Middle earning workers need something to help. Pensioners are getting over 8% rise, benefits up by 6.7%. It should be workers who get the tax cut this time.

most benefit claimants are workers, in work. Those workers would have their tax burden reduced and also their benefits would reduce leaving them the same money - but the tax payer paying less and the old age state pension will not increase to over £12000

most benefit claimants are workers, in work.

So surely they'll benefit from a NI reduction?

It also means that it's UK wide. Personal allowance in Scotland is completely different. Workers in Scotland are paying 42% tax on salaries over £43k.

not as much as those on higher incomes

But that applies to any tax cut

not as much as those on higher incomes

And? God the contempt against higher earners on these threads is getting so tedious.

To increase the economy it is better to have many people with some money in their pockets than just a few people with a lot of money to spend

It would have no impact at all on Scottish taxpayers whereas NI does.

Why is there such a presumption that lower earners get benefits? I'm not the lowest earner out there but I do get min wage so I'm not a high earner in any way
No benefits. I get 25% off my council tax

It's just really fucking irritating because someone now will ask if I have DC, and the people who are single and don't have children are totally forgotten about like we can live off fresh air when we are paying everything alone

YANBU, but Hunt is not trying to improve the economic situation of the whole UK, he's trying to alter the opinion polls so he wants a short term gimmick only.

Not threshold changes, that's the point.

well his last budget took us into a recession - so do more of the same will not be helpful

Not helpful for the UK economy, no, but as I say that's not Hunt's priority.

@PawsisShady same situation as you

Yes, I mean desperation written all over it. Then again Rishi is very relatable in that like ordinary families, they disagree on how to load a dishwasher and tbf to him I actually thought he would have people to load his dishwasher!

I wrote to my MP about the continued freezing of personal allowances and she didn't even bother to reply. We are stashing away as much as we can in ISAs, rather than spending anything we don't have to. It's not good for the economy not raising the PAs.

My personal opinion is that cutting at this time is the wrong step, but putting that aside.

I think the NI cut is beneficial over the longer term to all earners, be they higher or lower. As wages increase, which happens over time albeit slowly for some, the value of the tax cut increases.

Also the NI change helps those who miss out on other help that have been made available due to recent pressures. Those who receive no state help but are not wealthy. Yes this does includes higher earners however will be felt more by lower earners who do not qualify for benefits.

Those receiving some state income either via pensions or benefits have benefitted from increases in the rates and various cost of living payments and grants, however workers, particularly lower paid ones who receive no state assistance, have had very little bar the limited fuel bill assistance last year.

Personally I would rather not get a tax cut and have more invested into our economy, however I know I am speaking from a place of privilege about being able to afford that.

If there has to be tax cuts I can support this one as it benefits those who need help, but are being missed by current policy.

As a pensioner I’m happy the NI route has been chosen, hopefully it will avoid a huge increase in pensioner bashing here. The fact is that we can’t afford any tax cuts. Public services are cut to the bone and the country’s on its knees. It’s a blatant bribe to vote Tory, I hope it fails.

The workers on benefits will get the NI cut and the 6.7% benefit rise.