Money Wellness
people chasing after rising house costs
calendar icon09 Apr 2024

Ending national insurance could cost first time home buyers an extra £280 a year, the Labour Party warns

The Labour Party has warned that first time home buyers may be £280 worse off each year if the current Prime Minister follows through with the pledge to cut tax.

During the spring Budget, Chancellor Jeremy Hunt announced a 2p cut in national insurance and outlined a “long-term ambition” to scrap national insurance contributions altogether. The Labour Party has stated that ending national insurance would cost £46 billion.

New analysis from the party shows that an average first-time buyer spends roughly £1,120 in monthly repayments, and they could see monthly payments climb to £1,403 a month in the event of another ‘budget blackhole’.

This could see one in seven homes become out-of-reach for first home buyers, with many needing to buy a home with one-fewer bedrooms due to rising interest rates.    

Remarking on the analysis, Shadow Chief Secretary of the Treasury Darren Jones, accused the Conservatives of “betraying a generation of young families who want to get on and buy their first home.”

 

Avatar of Lydia Bell-Jones

Lydia Bell-Jones

With a background in banking, Lydia has been writing professionally for over five years. She is passionate about helping people improve their personal finances and has a particular interest in the connection between money and mental health.

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