Millions of UK workers are set for an increase in their take-home pay this week amid National Insurance changes coming into force.

As of Wednesday, July 6 2022, the threshold at which Brits will start contributing to National Insurance payments will rise from £9,880 to £12,570.

It comes after the National Insurance price hike, announced by Boris Johnson last year, came into effect in April.

The Prime Minister announced a 1.25 percentage point increase in National Insurance last September to address the funding crisis in the health and social care system.

Starting from Wednesday, July 6, your payslips will start to look a little different, but how much extra will you get?

How much extra pay will I get after the National Insurance change?

Nearly 30 million working people will benefit, with a typical employee saving over £330 in the year from July, according to the UK Government.

Daily Echo: (PA)(PA)

According to the Press Association, an individual on a £40,000 salary would pay £304.32 a month on National Insurance, prior to the 1.25 per cent hike.

Currently, they will pay £332.58 a month.

Following the change in the threshold on July 6, you would pay £302.87 a month.

According to Hargreaves Lansdown, someone earning £20,000 would have had a monthly National Insurance bill of around £104 before April, which then rose to £112 and will drop to around £82 following the July changes.

Someone on £30,000 would have paid around £204 per month before April, then rising to £222 and they will now see this fall to around £192.

Someone on £50,000 will pay around £413 per month from July, up from around £404 before April, and someone earning £60,000 will pay around £443 from July, up from £423 before April, according to Hargreaves Lansdown.

The Government has said seven in 10 (70%) workers who pay national insurance contributions (NICs) will pay less, even after accounting for the health and social care levy.

However, with everyday prices such as food and fuel rising sharply, some households may not feel better off in practice, even with more money in their pay packet.

What cost of living support is available?

Widespread and targeted support was recently announced with the aim to help people struggling through 2022 as a tough winter is expected.

More than eight million households will start to see cost-of-living payments hit their bank accounts on July 14, when the first instalment of £326 will start to be paid out to low-income households on benefits.

The second portion of the one-off £650 payment will follow this autumn.

Pensioner households will receive £300 to help them cover winter costs, while people on disability benefits will receive an extra £150.

Households generally will also have £400 shaved off energy bills.

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