The Conservative Government’s National Insurance hike comes into effect from today, meaning that the average local worker will be paying an additional £250 in National Insurance.
The 1.25 percentage point increase means that workers earning above £9,880 will pay 13.25% in National Insurance. The rate of NI that employers pay will go up by 1.25% too.
This year, the average MK worker on £33,420.40 will pay approximately £3,119.05 in National Insurance – an estimated increase of £256.81 compared to the year before.
Councillor Rob Middleton, Labour Progressive Alliance Cabinet Member for Resources, said:
“This is a dreaded day for many households and businesses across Milton Keynes who are already struggling with crippling inflation, rising energy bills, extortionate fuel prices and increasing food cost. The Conservatives have ignored calls to scrap the rise and instead forced a tax on jobs. It is a punishment for those who work hard for their families, only for a large chunk of their earnings to be taken away. Our Conservative Government have created this cost-of-living crisis.”
Councillor Jane Carr, Liberal Democrat Progressive Alliance Cabinet Member for Tackling Inequalities and Child Poverty, added:
“This Conservative National Insurance rise, which breaks their election promise, will plunge helpless families into poverty. And as the cost-of-living crisis continues to escalate, the Progressive Alliance is stepping up to provide support where the Conservative Government is failing. We are providing over £16m in direct cost-of-living support, including money for people that are struggling with energy bills, their council tax bill, and public transport fares. However the Council can only do so much – we need the Government to step up and provide proper support before it is too late.”