Following the recent reduction made in his autumn address, Chancellor Jeremy Hunt hinted at additional national insurance cuts in his future budget.
Some people who have seen their incomes reduced in recent years due to the cost of living crisis may find this to be good news, but economists have cautioned that tax cuts would be unaffordable and would need to be reversed after an election.
Real incomes for those in the 22–29 age range have decreased since 2002.
This is the point at which the period’s inflation is taken into account, including growing housing and food prices.
After taxes and student debt repayment, the median earnings for a twenty-something graduate in 2023 is £23,990, down from £25,200 in 2020.
The Institute for Fiscal Studies’ (IFS) deputy director, Helen Miller, stated: “This comes in the context of a protracted, multi-year freeze to it.
