THE Government's new National Insurance plan means the average Somerset West and Taunton worker will be paying less per year from July, figures suggest.

Nearly 30 million UK workers will see their taxes cut following Chancellor Rishi Sunak's raising of the NI earnings threshold, though a think tank said over 1 million Britons will be on the verge of "absolute poverty" due to the rising cost of living.

Figures from the Office for National Statistics show that the median salary for full-time workers living in Somerset West and Taunton was £28,672 in 2021.

Currently, employees pay National Insurance on 12% of their annual earnings over £9,568, meaning a worker on this wage would pay £2,292 – around £191 per month.

It was previously announced that NI rates will rise to 13.25% for one year from April 6 – to raise funds which will be ring-fenced for health and social care.

This means the average full-time Somerset West and Taunton worker will pay £20 more for a few months.

But 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 Somerset West and Taunton worker earning the median salary for the area will pay £159 less per year than they do now – £2,134.

This is compared to £2,254 across the South West as a whole, where the median salary for full-time employees is £29,585.

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”.

The Chancellor added that around 70% of workers would have their tax cut by more than the increase coming in April.