National Insurance threshold changes tomorrow - check how your next pay will be affected

dailyrecord.co.uk:

Nearly 30 million people will see a boost in their next payslip this month when the National Insurance (NI) threshold increases from £9,880 to £12,570 from Wednesday.

The change means a typical employee will gain an extra £330 this year from July 6 and could help ease the pressure of mounting bills amid the cost of living crisis.The move follows a controversial 1.25 percentage point increase in NI in April, to help pay for the Health and Social Care Levy.

Seven in 10 (70%) workers who pay National Insurance contributions (NICs) will pay less following the change, even after accounting for the new levy, the UK Government said previously.Of those who benefit from the threshold increase, 2.2 million people will be taken out of paying NICs altogether, it added.

However, Alice Haine, personal finance analyst at investment platform Bestinvest, said a £330 saving “won’t stretch far when you realise that only equates to £27.50 a month”.She continued: “Yes, every penny counts in this cost-of-living crisis and for some, that £27.50 could be the difference between having dinner every night and sometimes going without.“For others, however, that amount will barely make a dent in their budgets as they struggle to pay the household bills amid rampant inflation as soaring food, fuel and energy prices become the norm.”Ms Haine added: “All of this is set against a backdrop of falling real wages where runaway inflation is eroding any pay uplift workers receive, so any saving will quickly be swallowed up.“Delve deeper in the NI figures, and the saving made in July on NI is actually not that great if you go back in time a little.“This is because the threshold at which NI kicks in had already increased in April, going from £9,568 to £9,880,