Anna had always dreamed of a simple, stable life. A job she loved, a family she adored, and just enough income to make ends meet without worrying too much. She worked as a customer service manager at a small but growing company in a busy town in the UK. Her work was challenging, but she enjoyed helping people and solving problems. Every morning, she got up early, kissed her two kids goodbye, and headed to work with a sense of purpose.
But lately, things had started to feel different. Her workplace, like many small businesses, was already struggling with rising costs—energy bills, wages, and the increasing price of raw materials. The business was doing its best to stay afloat, but it wasn’t easy. And now, with the UK government announcing a rise in National Insurance (NI) contributions for employers starting in 2025, Anna’s company would face even more pressure.
One day, her manager called a meeting. “We’ve been informed about the government’s new tax changes,” he said, his voice somber. “Starting next year, the company’s costs will go up. We’ll have to start paying more in National Insurance. This could mean changes for all of us.”
Anna felt a tight knot in her stomach. She knew that her company, a small business, would be hard hit by the hike in employer NICs from 13.8% to 15%. She had heard about the lowering of the threshold too—the new rule that would make the company pay more for more employees, even those earning lower wages. It seemed like no one would be untouched.
She stayed quiet, but her mind was racing. She thought about the tight household budget she and her partner had been managing for months. The grocery bills were creeping up. The kids needed new clothes for school, and her daughter’s ballet lessons were becoming an expensive luxury.
The next week, Anna received an email from her manager, explaining the changes in more detail. It mentioned that, although the company would try to make use of the increased Employment Allowance, the overall cost would still be a huge burden. The company might have to reconsider salary increases or, worse, make cuts to some staff hours. Anna knew she wasn’t in a position to ask for a raise. She had heard that others, particularly the younger employees, might lose their part-time hours. The fear of losing her job was a constant undercurrent now, especially with so many companies struggling in the aftermath of the pandemic.
But it wasn’t just the financial strain that weighed on her. It was the mental toll. Anna had always prided herself on being strong, on keeping it together for her family. But now, the stress of it all—trying to stay positive at work, managing the bills, worrying about her job—was eating away at her. She would lie awake at night, thinking about how to stretch her paycheck just a little further, wondering if she’d need to take on a second job to keep up. Her sleep was restless, filled with anxiety about the future.
Anna’s mental health began to deteriorate. She started feeling more isolated, unsure if she could talk to anyone about the overwhelming pressure she was under. At work, she found it hard to focus, the weight of her personal worries clouding her thoughts. She began to feel more distant from her colleagues, too, as they all silently carried their own burdens. No one seemed to want to acknowledge the elephant in the room—the stress and uncertainty creeping into their lives.
One evening, after a particularly exhausting day, Anna broke down in front of her partner. Tears streamed down her face as she confessed how hard everything was becoming. “I don’t know if I can handle it much longer,” she said, her voice breaking. “The stress is just too much. I can’t even sleep anymore. What if I lose my job? What if things get worse?”
Her partner, though supportive, didn’t have the answers. They were both caught in the same storm, trying to figure out how to stay afloat. They talked for hours, trying to reassure each other, but deep down, Anna knew that the weight of the financial strain, combined with the uncertainty about her job, was taking a serious toll on her mental well-being.
As the months went on and the 2025 deadline loomed, Anna’s worries continued to grow. While the government’s budget reforms were designed to raise money to address fiscal challenges, they were also creating personal challenges for people like Anna. The pressure on small businesses to adapt to the new National Insurance rules, the potential layoffs or wage freezes, and the ever-increasing cost of living all contributed to the growing mental health crisis for everyday workers.
Anna wasn’t alone. Across the UK, many workers were feeling the same way. The burden of financial stress, compounded by the fear of job insecurity, was leading to increased anxiety, depression, and burnout. It wasn’t just about the money—it was about the fear of losing control over their lives, the fear of not being able to provide for their families, and the fear of an uncertain future.
In the end, the National Insurance hike may bring in much-needed revenue for the government, but for people like Anna, the mental health cost was undeniable. The government’s efforts to balance the books would have far-reaching effects—not just on the economy, but on the people who kept it running. For Anna and so many others, the road ahead seemed uncertain, and the mental toll was beginning to show.
This story is not unique—many workers across the UK are feeling the strain of these proposed changes. It’s important to remember that while policies and budgets are being shaped in Westminster, real people are facing the emotional and mental challenges of these decisions. And as we move toward 2025, we must not forget the human impact behind the headlines.
Thumbnail is a screenshot from BBC News