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D-IFF_ident
19th Apr 2002, 20:08
Can anyone tell me if my National Insurance contributions will increase?

I understand that the 1% rise announced in the budget is to pay for improvements to the NHS. But my NI contributions are abated from the current usual 10%(?) to 7%(?) because the cost of my healthcare is met out of the Defence Budget. So will my NI contributions increase to pay for the NHS when I don't current contribute to the NHS?

steamchicken
19th Apr 2002, 20:38
As far as I know, the NICs haven't been separated from the general budget for a long time - they may have been increased to get cash for the NHS, but they're not hypothecated i.e. specifically marked for it. So you'll probably have to pay.

NigelOnDraft
19th Apr 2002, 20:49
D-IFF_ident

I think you'll find you're NIC's are abated, not to do with Health care, but due to your Pension arrangements.

I seem to remember that when I was in the RAF on a SSC, my NI payments were higher than those on a PC, because I was earning towards SERPS and they were not... (because they were in the AFPS)

NoD

Muff Coupling
19th Apr 2002, 20:51
DIff..watch out if you are earning over £30k and a bit..the increase is 1% for all above £4580 AND a 2nd rate of 1% for those above £30.200k which is incremental. More you earn more you pay!

Expect a eye popping NI deduction:eek:

Cracking own goal though for Blair and Brown Chartered Accountants...1 Million people employed by the NHS, all paying the 1% NI increase..looks like all the dosh thrown at the system will be clawed back by the bean stealers. Ah smoke and mirrors...!

Obviously they learnt a trick from Paycut 2000 and used it on the the NHS employees as well:D

opso
20th Apr 2002, 20:35
Did some sums having trawled through the budget report and I reckon that your average Flt Lt aircrew (top rate) will be paying an extra £430 ish per annum and Flt Lt groundcrew an extra £300 per annum.