Martin Lewis reveals how changes to National Insurance could put as much as £780 back into YOUR pocket
It comes as the cancellation of the 1.25 per cent point rise in National Insurance came into effect on Sunday, reducing it back to 12 per cent.
Martin Lewis has explained how those earning over a certain amount could see an increase in their paycheque at the end of this month.
It comes as the cancellation of the 1.25 per cent point rise in National Insurance came into effect on Sunday, reducing it back to 12 per cent from 13.5 per cent.
The Government have claimed that 28million people across the country will hold onto an extra £330 of their income a year due to the U-turn on Rishi Sunak’s announcement earlier this year which was made when he was Chancellor.
It was intended to help pay for social care but the Party quickly reversed on the decision as part of Kwasi Kwarteng’s mini-budget in September under Liz Truss’ Cabinet.
Rishi Sunak and Jeremy Hunt did not make any changes after entering Downing Street last month.
Sharing the good news, Money guru Martin Lewis said: “Expect more in your take-home pay this month. Most National Insurance rates dropped to 12% (1.25 percentage points).”
Breaking down what it means for the different salary brackets, he explained:
. Those earning £15,000 will see a £30 gain a year.
. Those earning £20,000 will see a £93 gain a year.
. Those earning £40,000 will see a £343 gain a year.
. Those earning £75,000 will see a £780 gain a year.
Millions of people on low incomes have started to receive payments of £324 into their bank accounts from Tuesday as part of the Government’s cost-of-living support.
The Department for Work and Pensions (DWP) started making the payments directly into eligible people’s bank accounts on Tuesday.
There is no need for people to apply or do anything to receive it – so people should watch out for texts or emails from scammers inviting them to make applications.
The payments form the second part of a £650 sum being paid out to people receiving benefits such as universal credit, income-based jobseeker’s allowance (JSA), income-related employment and support allowance (ESA), income support, pension credit, child tax credit and working tax credit.
Payments of £326 have previously been made by the DWP and HM Revenue and Customs (HMRC).
DWP claimants will generally receive their second cost-of-living payments by November 23.
Eligible households receiving tax credits, and no other means-tested benefits, will get their second cost-of-living payment from November 23 and should receive it by November 30.
The DWP said that in a small minority of complex circumstances, it may pay some households after November 23, for example, if they were deemed unable to claim certain benefits, but won backdated entitlement on appeal, or where payments were rejected due to invalid account details.