Britons have voiced their displeasure at impending changes to national insurance, claiming it will have little effect.
It comes as millions of Brits prepare to receive a bit more in their pay packets thanks to a cut in the rate announced in November.
At the start of January the main rate of national insurance was cut from 12 per cent to 10 per cent and how much extra people depends on whether they are PAYE or self-employed, as well as other earnings.
Asked about savings of around £450 a year by GB News reporter Theo Chikomba, Britons weren’t overly impressed.
Jeremy Hunt announced the cut in his autumn statement
PARLIAMENT / GB NEWS
“It will just go on gas and electric. We won’t be any better off”, one said.
Another Briton added: “They should reduce taxes, drop food prices and energy too.
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One Briton was doubtful as to whether the cut will have any impact
GB NEWS
Another Briton was more upbeat about the cut
GB NEWS
“It’s not going to make a lot of difference, two per cent.”
Asked whether the Government is doing “enough” to tackle the cost of living crisis, he added: “I don’t think they are doing what they should do.
“We’re going to war with countries we’re not even involved with. The cost of a bomb would pay a lot of old age pensioners a lot of money.”
Chikomba spoke to someone who was satisfied with the change, telling GB News it will be “helpful for lots of people”.
“There’s a crisis at the moment with lots of people being able to afford things and just living in general”, she said.
Prime Minister Rishi Sunak has insisted that the Government is “making progress”, citing the national insurance reduction.
He argued that “because of that careful management of the economy, we’re now able to cut people’s taxes”.
“If we stick with this plan then we can ensure that everyone has peace of mind, that there’s a brighter future ahead, and a renewed sense of pride in our country – that’s what I’m focused on,” he added.
Cuts to national insurance and an anticipated increase in wages and state pensions have been encouraging in easing the financial woes for households this year.
As interest rates continue to remain high, consumers are expected to continue to face financial pressures throughout 2024.