What will the National Insurance changes mean for me?

As you may have heard, from 6th November 2022, there is going to be a change to your national insurance contributions. This is going to come into effect regardless of whether you are employed, or an employer, so pay attention!

Now, don’t get me wrong, this is a good thing, essentially, it means your take home pay is going to go up, although this may mean something different to everyone depending on what you earn.

So, once the reversal has kicked in, everyone who pays National Insurance, is going to be paying less.

We’ve looked into this, and as we said, this does depend on your annual take home pay, but these are the average savings*:

As you can see, the more you earn, the more you will be benefitting from the reversal. The reduction will be sitting at 1.25%, so this means is you were earning an average of £27,000 per year, you would only see an extra £15 per month benefit. *This will of course vary from person to person.

In addition to the reductions, the level in which the NI contributions start is said to be changing from £9,880 up to £12,570 per annum. What does this mean? This means that with a higher threshold and a reduction in contributions, around 30 million people are going to be better off each payday because you can earn more before making any contributions!

So, who has to pay National Insurance?

Everyone who works in the UK, should be paying national insurance! This is only inclusive of the following:

  • If you’re earning over £12,570 per annum
  • If your profits are exceeding £6,725 per annum as a self-employed person
  • If you are aged between 16 and retirement age
  • Employers pay extra NI contributions for staff
  • Self-employed people pay NI on their profits

This money goes towards the government contributions, your future state pension, Maternity allowance, bereavement support payments etc.


There are plenty of resources online to explain this change, so please do your research if this is something you are unsure about!