Jeremy Hunt announces national insurance cut

Jeremy Hunt has announced that he is cutting national insurance for more than 27 million people by two percentage points in a move that will save people more than £450.

The chancellor said that he would reduce the main rate of employee national insurance from 12 per cent on earnings to 10 per cent.

“If we want people to get up early in the morning, to work nights, to go the extra mile, we need to recognise their hard work benefits us all,” he said. The government also cut national insurance for self-employed workers.

Hunt has confirmed that benefits will rise in line with September’s inflation figures by 6.7 per cent, while the state pension will rise by 8.5 per cent.

Faye Church, Senior Chartered Financial Planner, Investec Wealth & Investment: “A cut in National Insurance from 12% to 10% will benefit lower and middle earners giving a much needed boost to take home pay.

“The current system takes 12% of annual earnings between £12,570 and £50,270, so someone earning an average salary of £35,000 would save £350 a year. For someone earning £80,000 a year, they stand to save £754 a year.

“Help for the self-employed by abolishing Class 2 National Insurance Contributions will save £192 per year, and a reduction in Class 4 National Insurance Contributions from 9% to 8% will save around two million self employed £350 from April 2024.”

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Jeremy Hunt announces national insurance cut

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