Stuart Anderson MP has welcomed a £6 billion tax cut for 30 million working people across the UK. As of today, the sixth of July 2022, National Insurance starting thresholds have risen from £9,500 to £12,570 – bringing it in line with the equivalent Income Tax personal allowance. The tax cut is worth over £330 a year, meaning that 70 per cent of people will pay less tax even after accounting for the new Health and Social Care Levy. The new Levy is raising £36 billion over the next three years to help speed up NHS diagnoses and reduce patient waiting times. As a result of the tax cut, the UK now has some of the most generous tax thresholds in the world.
Stuart also welcomed further support for local families with the cost of living. On the 22nd of June, it was revealed that 13,500 households across Stuart’s constituency of Wolverhampton South West will benefit from two cost of living payment totalling £650, with the first payment due to be paid into bank accounts from Thursday, the 14th of July 2022. It was also revealed that 8,000 people in the constituency receiving eligible disability benefits will get an extra £150 to help with additional costs they face, which can be paid on top of the £650. It will land in bank accounts in September. Pensioners in receipt of Winter Fuel Payments will receive an extra £300 to help cover the rising cost of energy.
Stuart has commended the measures, which are part of a package of support that is worth £37 billion and includes universal support. All households will receive a £400 grant via credit from energy suppliers from October 2022, which will not need to be paid back. A discount on £150 for properties in Council Tax bands A-D has already been applied, helping around 106,000 households across Wolverhampton. Together, this means that millions of the lowest-income households will receive at least £1,200 in support this financial year. Stuart has compiled further information regarding support for individuals on his own website, which can be found via this link: www.stuartanderson.org.uk/support-individuals.
Stuart Anderson MP said: “I am delighted that the take home pay of 30 million people will be boosted by more than £330 a year with this tax cut. It means that we now have some of the most generous tax thresholds in the world - with people being able to earn £12,570 a year without paying a single penny of income tax or National Insurance. This is a significant milestone in our journey towards lower taxes, as we continue to help people manage the increased cost of living. Together with our package of £37 billion financial assistance, it will help to ease the current pressures on household budgets, which have been exacerbated by the unjust war in Ukraine."
The Government has launched a new online checker to show how the take home pay will be boosted, using salary information to give employees personalised estimates of how much they could save: www.gov.uk/guidance/estimate-how-the-national-insurance-contributions-c….
- March 2022: Cutting fuel duty on petrol and diesel by 5p per litre
- April 2022: Cutting taxes on small businesses by up to £1,000 - by raising the Employment Allowance to £5,000
- July 2022: Aligning the annual National Insurance Primary Threshold and Lower Profits Limit with the income tax personal allowance, making the first £12,570 of earnings tax free
- April 2023: Cutting taxes on business investment - by reforming Capital Allowances and R&D tax reliefs
- April 2024: Cutting the basic rate of income tax from 20% to 19%