Joe Makin, a 23-year-old administrative worker from Selby, North Yorkshire, who earns £22,000 per year, shared his reaction to the recent Budget announcement. The 2% National Insurance (NI) cut means he will retain an additional £188 of his annual salary, which equates to just over £15 a month. However, considering the NI cuts announced last autumn and the income tax threshold freezes between 2021 and April this year, individuals earning £22,000 will still be over £150 a year worse off overall.
Makin stated that his monthly income after tax is approximately £1,600, with £1,000-£1,100 of that going towards rent and bills. He believes the NI cut will have a negligible impact on his financial situation but acknowledges it as a step in the right direction for others due to its scalability. However, he expressed disappointment with the extent of the changes, stating that they do not go far enough to address the ongoing cost of living crisis, especially for those worse off than him.
