Cost of Living Calculator: Find out how much you’ll pay for National Insurance

Many households across the country are bracing for the financial crisis to hit in April as the cost of living continues to rise to record highs. It comes as the Chancellor of the Exchequer announced a number of economic decisions set out in the Spring Budget this week.

Of these, the National Insurance contribution threshold will rise to £12,570, which may affect how much you pay in taxes and other bills. Rishi Sunak defended the package of measures he announced in his spring statement on Wednesday after being criticized for not going far enough for those at risk of falling into poverty due to rising living costs.

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But he said he had “always tried to be honest with people”, and said: “I can’t protect them from absolutely everything that we’re facing.” Mr Sunak said he was “anxious” on behalf of the country and said he knew mounting financial pressures were “people’s main concern right now”.

The Office for National Statistics (ONS) recently revealed that consumer price inflation – a measure of the rate of increase in the price of goods and services – hit 5.4% in December, its highest level since 1992. And household budgets are expected to be even tighter. this year with price increases expected in various sectors of the economy.

We’ve updated our cost of living calculator to reveal how much extra you could be paying on bills and taxes from April to reflect changes to national insurance thresholds.

The calculator is based on a rate increase for employees of 12% to 13.25% on earnings of £9,880 to £50,270 a year until July and between £12,570 and £50,270 after that to reflect the raised threshold, and a rate of 3.25% on anything beyond (instead of 2%).

For the self-employed, the rate will increase from 9% to 10.25% and 2% to 3.25% respectively on equivalent profits, plus new weekly payments of £3.15 on profits over £9,880 up to in July, and the same on profits over £12,570 from then on.

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