Real effect of new NLW and NI changes - low.

I’ve crunched some numbers to see the effect of the ‘generous’ changes announced yesterday. A 35 hours worker, paying rent and claiming benefits will see from the new NLW rate & 10% NI, not a lot. Employers will pay an extra £40.63 (including employers NI). Tax and benefit clawbacks will take £33.76. Real gain for employees from extra pay is £6.86.  89.86% of gross increase has been taken away. Details at https://benefitsinthefuture.com/ .

What Gareth? You mean there was a lot of smoke and mirrors from the Chancellor of the Exchequer yesterday? Surely not…..

Shocked me too.