Tom Evennett, EY Personal Tax Partner, comments on National Insurance:
“The Chancellor confirmed today that National Insurance (NI) threshold would move a step closer to the income tax personal allowance, delivering on the manifesto commitment. The National Insurance (NI) threshold will increase from £8,632 to £9,500 with the stated aim of increasing to £12,500 over the life of the parliament, representing an annual saving of £100 a year.
“This is part of a package of measures to support the low paid, together with the increase the National Living wage from £8.21 to £8.72, with a target of two thirds of median income (predicted to be £10.50 per hour) by 2024.
“For low paid full-time workers, the increase in the minimum wage will be worth significantly more than the changes in national insurance, which amounts to roughly a can of own-brand baked beans or an extra pint of milk a day for those struggling to make ends meet.
“While all extra money will be welcome, it’s clear that the pay rise will be much more valuable than the NI break.”