A hidden £5 billion pound tax raid will hit the pay packets
of 5 million public sector workers next April.
Workers who earn £25,000 – around the average salary – could
have to pay an extra £267.80 because of a rise in National Insurance
contributions.
The increase is a little known consequence of the new state
pension from April 2016.
Those affected are currently contracted out of the state
second pension – a top up scheme that allows workers to earn extra retirement
income. As they opted out the Treasury reduced NI contributions. The state
second pension is to be scrapped from April so anyone contracted out will have
to pay higher NI contributions.
Many workers didn’t know they were paying lower National
Insurance but anyone contracted out will pay an extra 1.6p National Insurance
for every £1 they earn.
When the new state pension was introduced workers were told
that anyone who had 35 years of NI contributions would qualify for the full new
pension. This is not the case and one in three workers will get the £151.25 a
week from next April.
To find out more go to https://www.gov.uk/yourstatepension
Find out how much
State Pension you can expect by getting a State Pension statement. Go to https://www.gov.uk/state-pension-statement
