ON THE DAY OF THE BUDGET REMEMBER THIS

When is a 10% inflation busting rise? – not a 10% inflation busting rise?

Or is our Government simply asking us to believe the headline figures?

SMOKE & MIRRORS?

EXAMPLE

Let’s say you are earning £33,000 pa (£2,750 pm) and you receive a 10% pay rise your salary rises to £36,300 (£3,025pm).

But your take home pay only rises by £2,244 and that works out as a percentage increase of only 6.8%!

The reason? – because the Government claws back 3.2% of your (‘10%’) rise in income tax & NI

Your original take home pay from your £33,000 salary       = £26,464.20

Your new take home buy from your new £33,600 wages   = £ 28,708.20

So from your inflation busting rise of £3,300 this is split as follows:

£2,244 YOU KEEP (6.8%)

£1,056 THE GOVERNMENT KEEPS (3.2%)

The above ignores pension contributions, it uses the 1257L Tax code and, does not come under the Scottish system.

“Workers should not ask for big pay rises, to try and stop prices rising out of control, the Bank of England governor has told the BBC.”

Inflation-busting pay rises are “unaffordable”, cabinet minister Mark Harper has told Sky News in the face of strikes in the public sector.