Martin Lewis warns new National Insurance rules are 'big'

Martin Lewis has warned over a "big" National Insurance change coming after the Labour Party Budget. The BBC and ITV regular was speaking out after Chancellor Rachel Reeves' Autumn Statement was delivered from 12.30pm on October 30.

Mr Lewis said: "The change of threshold so employers now start paying National Insurance at £5,000 not £9,100 is big. For the employers who pay it, at the new 15% rate that alone's £615 increased cost per most employees per year.

" The question is where will that money come from, profits, increasing charges or reducing salaries/benefits? #Budget " During her Budget, Ms Reeves also said there would be a “tripling” of investment in breakfast clubs to fund the service in thousands of schools.

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Mr Lewis said: "The reason I say "for employers who pay it" is because the Employers Allowance for NI has been increased from £5,000 to £10,500 a year (so this is amount off employers NI bill) so v small businesses won't pay it."

The Chancellor also told the Commons: “I am increasing the core schools’ budget by £2.3 billion next year to support our pledge to hire thousands more teachers into key subjects. So our young people can develop the skills that they need for the future, I am providing an additional £300 million for further education.”

On the need to reform special educational needs provision, Ms Reeves said: “To support that work, I am today providing a £1 billion uplift in funding, a 6% real-terms increase from this year.” Ms Reeves has pledged to “stop shoplifting in its tracks” with additional funding, too.

She said: “We are taking action to deal with the sharp rise in shoplifting we have seen in recent years. We will scrap the effective immunity for low-value shoplifting introduced by the party opposite. And having listened closely to organisations like the British Retail Consortium and USDAW (Union of Shop, Distributive and Allied Workers), I am providing additional funding to crack down on the organised gangs which target retailers and to provide more training to our police officers and retailers to help stop shoplifting in its tracks.”

And Ms Reeves said there would be a “significant real-terms funding increase” for local government next year, noting this included £1.3 billion of additional grant funding to deliver “essential services”. The Chancellor said there would be at least £600 million in grant funding for social care and £230 million to tackle homelessness and rough sleeping.

Ms Reeves also said: “We are today confirming that Greater Manchester and the West Midlands will be the first mayoral authorities to receive integrated settlements from next year, giving mayors meaningful control of the funding for their local areas.”