Shop workers and hospitality staff will be £1,000 worse off under NI rise

Workers in shops, restaurants and canteens will be more than £1,000 worse off a year under Boris Johnson’s National Insurance tax hike, Labour has claimed.

Analysis by the party found the national insurance hike combined with planned cuts to Universal Credit and plans to freeze the income tax personal allowance would take £1,130 away from an average hospitality worker.

Labour said many other workers, including those that steered the country through the pandemic, would be impacted with those including social care workers, nurses, teaching assistants and supermarket staff losing more than £1,100 a year.

The party found that the average band 5 nurse would lose £1,159 next year, while a social care worker would lose £1,108, a supermarket worker £1,040 and a teaching assistant £1,040.

Boris Johnson has insisted that raising national insurance is “the right, the reasonable and the fair approach”.

But the Labour leader accused the Prime Minister of “putting the very wealthiest ahead of working people who have to pick up the bill”.

Ahead of a campaign visit on Monday Starmer said: “The Conservatives’ plans to impose unfair taxes are an attack on working people and an attack on the key worker heroes who have got our country through the pandemic.

“As usual with this Prime Minister, it is working people who are going to pay for the cost of his failure.

“Two-and-a-half-million working families will face a double whammy of a national insurance tax rise and a cut to Universal Credit.

“This is the same old Tories – putting the very wealthiest ahead of working people who have to pick up the bill.”

Tory Heath Secretary Sajid Javid confirmed on Sunday that the Conservative plan to reverse the £20 uplift in Universal Credit would go ahead.

Labour said its alternative plan would include an immediate increase to the minimum wage to at least £10 per hour, which the party estimated would put £2,000 into the pockets of full-time minimum wage workers.

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