A £1 Pay Rise Could Leave You Tens of Thousands Worse Off in Britain
Posted4 months agoActive4 months ago
news.sky.comOtherstory
skepticalnegative
Debate
20/100
UK EconomyTaxationWelfare
Key topics
UK Economy
Taxation
Welfare
Article discusses how a £1 pay rise in Britain could lead to significant financial losses due to tax and welfare implications.
Snapshot generated from the HN discussion
Discussion Activity
Light discussionFirst comment
14m
Peak period
2
14-15h
Avg / period
1.5
Key moments
- 01Story posted
Sep 13, 2025 at 9:36 AM EDT
4 months ago
Step 01 - 02First comment
Sep 13, 2025 at 9:50 AM EDT
14m after posting
Step 02 - 03Peak activity
2 comments in 14-15h
Hottest window of the conversation
Step 03 - 04Latest activity
Sep 13, 2025 at 11:53 PM EDT
4 months ago
Step 04
Generating AI Summary...
Analyzing up to 500 comments to identify key contributors and discussion patterns
ID: 45231988Type: storyLast synced: 11/17/2025, 2:02:26 PM
Want the full context?
Jump to the original sources
Read the primary article or dive into the live Hacker News thread when you're ready.
In an example of reduced personal allowance (£110k earnings, taxed at 40% rate above 52k, additional 5k becomes taxable), it's not clear at what rate is it taxable?
I would guess at 20% (part of less than 52k), so you are really adding 1k to your tax bill, so instead of 34k you are paying 35k (for a rate of 32% instead of 31%). Even if it was taxed at 100%, in the worst case (124k, no allowance), you'd be adding 12k to you tax bill, for a rate of 41% — still a far cry from the claimed 60%, but also better off than 45% in the next tax bracket.
Can anyone clarify what's going on here? Or does this include the loss of child benefits too? Does it not depend on the number of children too?