UK households will get £754 in their bank accounts from January, Martin Lewis has advised. The ITV The Martin Lewis Money Show star spoke out ahead of the National Insurance payback at the start of 2024, with families and households set to increase take-home pay by HUNDREDS.
Due to the National Insurance cut, which was announced by Chancellor Jeremy Hunt last week in his Autumn Statement, people will see their take-home pay boosted by as much as £750. BBC Sounds and ITV The Martin Lewis Money Show star Mr Lewis said: “What has been cut is National Insurance, which is effectively a tax on earned income only so that they’re trying to give that incentive to those who earn.
“The first one and the main one is from the 6th of January – normally this would happen in April but he’s bringing it forward, it’s almost as if we’ve got an election next year isn’t it? Who would have thought that. On the 6th of January epiphany, I wonder if that’s a subtle joke, we’re going to see the employee rate of National Insurance cut from 12% to 10%.
“The way National Insurance works, it is a tax, so if you earn over £12,570 you’re currently giving 12% of anything over that to the tax office in the form of National Insurance, you’ll only be giving 10% of that, so that is quite a substantial cut and it means people will take home more next year.
“It doesn’t make up for the freezing of the Income Tax thresholds that we’ve had for the last couple of years but it is an attempt to be a bit more generous and get a bit more money in people’s pockets.” If you are earning £20,000, you’ll get £148.60 back, Mr Lewis said, and if you’re earning £30,000, you’ll get £348.60 back.
If you are earning £35,400 average – £450 back, if you are earning £45,000 – £648.60 back, if you are earning £55,000 – £754 back, if you are earning £65,000 – £754 back and if you are earning £70,800 and over £754 back.
