NI hike opens up £2.8bn savings gap, Insight says

The first salary slips affected by the new NI rates should be slipping into employees' hands right about now and the effect is likely to be another blow to the government's attempts to close the savings gap, Insight Investment says. It calculates that the gap will increase by up to £2.8bn this year because the reduction in disposable income will act as a dis-incentive to saving. The figure is based on the £204 reduction in disposable income that the average earner will take-home over the course of the next year, and which half of those surveyed by Insight said would mean they ...