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National insurance hike will be a double blow to workers, watchdog warns 

National insurance hike will be a double blow to workers because bosses could pass on their own increased costs to staff, watchdog warns

  • Workers will face a double whammy from national insurance rise says watchdog
  • Bosses will pass on cost of own higher national insurance contributions (NICs) 
  • Labour claimed the average worker’s NICs will rise from £274 to £500 a year


Workers face a double whammy from the looming national insurance rise, according to the Government’s economic watchdog.

As well as having to pay more in tax out of their pay packets, millions will also be hit as bosses pass on the cost of their own higher national insurance contributions (NICs).

Analysis by the Office for Budget Responsibility found that 80 per cent of the rise in employers’ NICs will be ‘passed through to workers via lower nominal wages’, while the other 20 per cent will be felt by consumers via higher prices. Labour claimed the average worker’s NICs will rise from £274 to £500 a year.

Workers face a double whammy from the looming national insurance rise, according to the Government’s economic watchdog (Stock Image)

In a boost to the Daily Mail’s Spike the Tax Hike campaign, small firms today say scrapping the national insurance rise will boost career opportunities for thousands of young people.

The Federation of Small Businesses (FSB) says most employers pay NICs for any apprentices they take on and scrapping the rise will spur them to take more on.

FSB chairman Mike Cherry said: ‘Our apprentices are our future business leaders and innovators, and that’s why we should be doing all we can to create more of them.’

Last night a Treasury spokesman said: ‘It’s right that employers, who benefit from a healthy workforce, contribute to the health and social care levy so the costs are more widely shared.’

The Federation of Small Businesses (FSB) says most employers pay NICs for any apprentices they take on and scrapping the rise will spur them to take more on. Pictured:  Chancellor Rishi Sunak

The Federation of Small Businesses (FSB) says most employers pay NICs for any apprentices they take on and scrapping the rise will spur them to take more on. Pictured:  Chancellor Rishi Sunak

Meanwhile, a former Minister piled more pressure on Chancellor Rishi Sunak to scrap his plan to increase national insurance to raise £12billion for health and social care, in the wake of last week’s interest rate rise.

John Redwood wrote yesterday: ‘As the Bank of England has decided to make us worse off by hitting the economy hard to correct for its past errors, the Chancellor should ease the tax squeeze to avoid a double whammy on living standards.

‘It would also make him more popular.’  

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