Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Over six million workers will face a surprise cut in their take-home pay from next month after a technical tax change announced by the Chancellor.
George Osborne has changed the way national insurance contributions are calculated as moves to consolidate the state pension into a so-called “single tier”.
Affected employees face an extra 1.4 per cent charge on their earnings through NI, while employers will be hit with a 3.4 per cent charge.
The changes are expected to raise £5.5 billion a year for the Treasury.
Workers could previously opt out of the second state pension and pay a lower rate of national insurance – but this rule is now being abolished.
The opt-out could only be used by people with access to an employer pension scheme, which they “contracted out” their contributions to.
The changes will hit around five million public sector workers and 1.5 million private sector workers.
Steve Webb, former Liberal Democrat pensions minister and now director of policy at Royal London, told The Times newspaper: “I think the chancellor had hoped that no one would notice this rather large tax increase smuggled out in advance as it was some years ago.”
Paul Johnson, director of the Institute for Fiscal Studies think tank, said: “Members of final salary occupational pension schemes and their employers will now be paying the same NI contributions as the rest of us.
“Since they will be building up just the same state pension rights this can only be right.”
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments