On 23 March and at a time when the UK is facing record inflation and plummeting purchasing power, UK Chancellor of the Exchequer Rishi Sunak presented the government’s spring statement and announced an increase in the income threshold above which employees will have to pay social contributions (NICs national insurance contributions). While this measure is intended to increase take-home pay, both trade unions and employers remain unconvinced, at a time when the introduction of a tax to finance the health care system (NHS) has been confirmed, and this despite another shock to the UK economy.
The annual income threshold above which employees are liable for social security contributions will be raised by £3,000 (€3,598) to £12,575 (€15,080) starting in July, the executive announced on 23 March at the presentation of the spring statement (a ‘mini-budget’). With this measure, the government’s goal is to increase take-home pay at a time when inflation could hit the UK public with the largest annual drop in their real disposable income since the Second World War. This new threshold will
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