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.”
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.
Related posts
27 Jul 2024
We’re talking to the BBC about the benefit mistakes driving people into poverty.
26 Jul 2024
Find out how much money you’ll spend in your lifetime.
26 Jul 2024
Industry watchdog the CMA has found retailers are bosting profits by charging more for fuel than they need to. Find out how to find the cheapest way to fill your tank
25 Jul 2024
Our response to the GB Energy Bill.