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Budget 2020: NI threshold hiked to £9,500

Budget 2020: NI threshold hiked to £9,500

The new chancellor has confirmed the government will raise the threshold at which people start paying national insurance contributions to £9,500.

In the first UK Budget since October 2018, Rishi Sunak announced today (March 11) the NI threshold would jump from £8,424 to £9,500 in just four weeks time.

Mr Sunak said this would save the typical employee more than £100 a year.

The move was announced in legislation laid in Parliament earlier this year (January 30).

Prime minister Boris Johnson first announced the Conservatives would raise the Nics threshold in November as part of his election campaign.

The government's ultimate aim is to increase national insurance thresholds to £12,500, which will put almost £500 a year into people’s pockets.

Mr Sunak also announced today the government would raise the national living wage by 6.3 per cent in what he described as the "biggest cash increase ever" to minimum wage workers.

The government is aiming for a living wage of more than £10.50 within the next five years.

imogen.tew@ft.com

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