NORTHERN workers are in for a shock when National Insurance contributions rise in April, it is claimed.

Research by Barclays has found that 53 per cent of those quizzed did not know about the Treasury's move to raise an estimated £4 billion a year from this source.

And almost a third of the 47 per cent who were aware of the pending increase did not know how much extra it would cost them.

Christine Martindale, communications regional manager at Barclays in the North-west, said today: "Our research suggest that people are in for a shock when they get their first pay packet after the increase in National Insurance has come into force.

"No wonder it has been dubbed the forgotten tax."

She added: "In terms of minimising the impact, there is little people can do -- except make sure they are running their finances as tax-efficiently as possible.

"They can do that by making sure they use their ISA allowance, for example, or by off-setting their savings against their mortgage."

Barclays says someone on average earnings of £24,164 will have to pay an extra £195 a year.

A worker earning £30,000 annually will be £254 per year worse off and someone earning £50,000 will pay £454 per year.