What the National Insurance change means for average Wigan worker
The Government's new National Insurance plan means the average Wigan worker will be paying less per year from July, figures suggest.
Nearly 30 million UK workers will see taxes cut following Chancellor Rishi Sunak's raising of the NI earnings threshold.
But a think tank said over one million Britons will be on the verge of "absolute poverty" due to the rising cost of living.
Currently, employees pay National Insurance on 12 per cent of earnings over £9,568, meaning a worker on this wage pays £2,549 – around £212 per month.
It was previously announced that NI rates will rise to 13.25 per cent for one year from April 6 – to raise funds for health and social care, meaning an average Wigan worker paying £22 more for a few months.
But in his spring statement, Mr Sunak announced the earnings threshold will rise to £12,570 from July to mitigate the increasing cost of living, meaning the average Wigan worker will pay £132 less per year than they do now – £2,417.