Millions to receive more money when they get paid without doing anything extra this month

Millions of Brits are set to notice more money in their bank accounts within the next day without even having to lift a finger.

With the end of the month just one day away, pay day is on the horizon for most of us.

But with tax, national insurance, student loans and pension payments, a huge chunk of it often missing from our wages before they even hit our bank account which is always a bit gutting.

But in this month's pay packet, you might notice more funds in your bank - and it's all down to changes that were made back in March at the Spring Budget.

While it doesn't benefit absolutely everyone, the majority of us should see some extra cash.

On 6 March, chancellor Jeremy Hunt set out a range of new financial measures in the House of Commons.

In what was an expected announcement, Hunt explained that National Insurance (NI) was to be slashed by two pence.

This will put money back into the pockets of some 27 million people in the United Kingdom.

National Insurance contributions will be cut from 10 percent to eight percent on earnings between £12,570 and £50,270 a year.

Heaps of us will benefit from the changes, but for some, there'll be no difference at all.

You might notice some extra money this month. (d3sign/Getty Stock Image)

While NI isn't paid on earnings below £12,750, there'll be no change to contributions on earnings over the upper limit of £50,270, either.

If you find it all a bit confusing, fear not, as Martin Lewis' team has explained how it works.

The financial journalist said that if you earn between £12,750 and £26,000, or over £60,000, there will be nothing to gain.

Over on Money Saving Expert, they explain that both national insurance and income tax thresholds have been frozen since 2021 and are set to stay frozen until 2028.

"What freezing the threshold does is that it means no matter what you earn, as your earnings increase, a bigger proportion of your earnings goes on tax. And that's how the Chancellor makes money from it," Martin says.

Although workers earning between £26,000 and £60,000 will gain more from the National Insurance cut than they would lose from the freeze, those earning between £12,750 a year and £26,000 - or for those earning more than £60,000 - will see no benefit.

The average worker could save £450. (SolStock/Getty Stock Image)

So what does all this really mean in monetary terms?

Well, The Treasury has said that the move will save a UK worker on the average salary of £35,000 about £450, but of course, those on a higher wage will see a larger saving.

Every little helps.

Topics: Money, UK News

Lucy Devine