Alistair Darling finally admitted that employment agencies may be getting more job seekers next year when the controversial plan to increase National Insurance by 1p comes into affect next April.
Under a barrage of questioning from shadow chancellor George Osborne, Alistair Darling, said that he admits that jobs will be lost due to this change but added it will be manageable.
In a TV debate between Darling and Osborne, Osborne stated that although the government had identified and wasted £11 billion and instead of focusing and stopping this kind of waste, the actions of the government is to tax every single person more by increasing National Insurance. Osborne went on to say not only is this wrong but when we are trying to recover and encourage more jobs it seems ludicrous to squeeze everyone’s income.
The news of the 1p increase, which means basically that now for every pound you earn, you will pay 12p instead of 11p to the government. Then there is also a change for the employers as well, with an increase from 12.8% to 13.8%, this will cost businesses billions. This has not been met by much support and we will have to see how business and employees can cope with this kind of added spending.
From my point of view, I think there is a fine line of acceptable increases and find that this kind of action as a bit to broad ranging and penalising, not forgetting companies with many employees will suffer greatly with added pressure of paying more National Insurance and when we are hoping that companies are just now finding their feet, this Employers NI increase could only be a set back for them.


