THE Government's new National Insurance plan means the average Bournemouth, Christchurch and Poole worker will be paying less per year from July, data suggests. 

Figures from the Office for National Statistics show that the median salary for full-time workers living in Bournemouth, Christchurch and Poole was £28,755 in 2021.

Currently, employees pay National Insurance on 12 per cent of their annual earnings over £9,568, meaning a worker on this wage would pay £2,302 – around £192 per month.

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In his spring statement, Mr Sunak announced that the earnings threshold will rise to £12,570 from July to mitigate the increasing cost of living, meaning a Bournemouth, Christchurch and Poole worker earning the media salary for the area will pay £158 less per year than they do now – £2,145.

Mr Sunak said it was “a £6 billion cut in personal tax cut for 30 million people across the United Kingdom, a tax cut for employees worth over £330 a year”.

Further measures unveiled include a 5p cut in fuel duty and a pledge to cut the basic rate of income tax from 20p in the pound to 19p in 2024.

READ MORE: Spring statement: What did the Chancellor announce?

However, the Resolution Foundation said the “big but poorly targeted policy package” does not do enough to aid the families who have been hit the hardest by the cost-of-living crisis.

It estimates that 1.3 million Britons are set to fall below the poverty line next year, including 500,000 children – the first time Britain has seen such a rise outside of a recession.

It also determined that only one-in-eight workers will actually see their tax bills fall by the end of the parliament.

Resolution Foundation chief executive Torsten Bell said: “Rishi Sunak has prioritised rebuilding his tax-cutting credentials over supporting the low-to-middle-income households who will be hardest hit from the surging cost of living, while also leaving himself fiscal flexibility in the years ahead.

“Whether that will be sustainable in the face of huge income falls to come remains to be seen.”

Asked about this report, Mr Sunak told Beth Rigby Interviews that over the last 10 years, the number of people living in poverty has declined by about 1.3 million people.