You Could Be Hundreds Of Pounds Better Off From Midnight Tonight

The cost of living crisis is prompting everyone to tighten up their finances, but it turns out that after a lot of bad news, there is some light at the end of the tunnel.

Thanks to some changes in National Insurance payments, you could be hundreds of pounds richer after midnight tonight.

The changes will impact 30 million workers in the UK and will put a much-needed £6 billion back into people's pockets as prices soar.

The government decided to change the National Insurance threshold in a bid to help those most affected by the cost of living crisis, as reported by the BBC.

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The threshold at which you will be required to pay National Insurance will increase tonight, which means that some of the UK's lowest earners will get to keep more of their cash - and some won't pay any National Insurance at all.

From 6 July, the amount you can earn before you pay National Insurance will increase from £9,880 a year to £12,750.

But there is also good news for anyone earning between £12,720 and £50,270 a year as they will now only need to pay 13.25 percent National Insurance on their earnings, which save hundreds of pounds.

You can find out exactly how much you are going to save with this National Insurance calculator.

However, the calculator itself does not take into account the first three months of this year when national insurance contributions increased.

Nimesh Shah, chief executive of tax advisory group Blick Rothenberg, said your saving may therefore not be quite as large as it looks.

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However, the government's website does state that the calculator is not 'an accurate calculation of your actual liability.'

The change comes after the government previously increased the amount of National Insurance people were paying in a bid to help fund the NHS and social care.

People have been paying an extra 1.25p for every pound they have earned since April.

But regardless, as the old saying goes, every little helps, especially when the Bank of England has warned that inflation could be as high as 11 percent by this September.

The main factor driving inflation at the moment are rising energy bills, particularly as oil and gas prices have been increased by the ongoing war in Ukraine.