Typical British household pays over £1m in taxes in their lifetime… before national insurance hike

The average household in the UK pays over £1m in taxes in their lifetime even before the national insurance hike comes into effect, reveals a fresh study released today.

The new research underlines the heavy tax burden Brits are already shouldering even before the 1.25 percentage point national insurance hike takes effect in April.

According to figures compiled by the TaxPayers’Alliance, a typical household in the UK will have to work over 18 years just to meet their bills to the taxman.

The poorest households in the country need to work over 23 years to pay off nearly £450,000 in tax debts.

Prime Minister Boris Johnson and Chancellor Rishi Sunak yesterday confirmed in an article in The Sunday Times the looming national insurance hike will go ahead, ending weeks of speculation sparked by reports the pair were mulling either delaying or scrapping the plans altogether.

“We are tax-cutting Conservatives. We believe people are the best judges of how to spend their money,” the duo wrote.

After the national insurance changes take effect, alongside a dividend tax hike and the freezing of income tax thresholds, the UK’s tax burden will swell to its highest level since the 1950s under Clement Atlee’s Labour government.

The size of the state, measured as total spending as a proportion of the entire UK economy, will increase to its highest level since the 1970s.