Millions of Brits to get extra £450 as government slashes National Insurance
Millions of Brits will be better off from January next year as the Government announces a cut in National Insurance.
Chancellor Jeremy Hunt has said the main rate of National Insurance rate will be cut by two percentage points from 12 percent to 10 percent, from 6 January next year.
The change will help 27 million people and means someone who is on the UK average salary of £35,000 will save over £450 a year.
Hunt said: "I would normally bring in a measure like this for the start of the new tax year in April, but instead, tomorrow I’m introducing urgent legislation to bring it in from 6 January, so that people can see the benefit in their payslips at the start of the new year."
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He added: “It means someone on the average salary of £35,000 will save over £450. For the average nurse, it is a saving of over £520 and for the typical police officer it is a saving of over £630 every single year.”
The Government has also introduced a boost in the National Living Wage.
Hunt announced an increase of £1.02 an-hour to be introduced in April - meaning the National Living Wage for those 21 and over will rise to £11.44 an-hour.
The rate is currently £10.42 for workers aged over 23, but the new figure will apply to 21 and 22-year-olds for the first time.
The rate for those aged 18 to 20 will rise to £8.60 an-hour, while 16 to 17-year-olds will be on £6.40 an-hour, which will also be the new hourly rate for apprentices.
Hunt said: “Next April all full-time workers on the National Living Wage will get a pay rise of over £1,800-a-year. That will end low pay in this country, delivering on our manifesto promise.
“The National Living Wage has helped halve the number of people on low pay since 2010, making sure work always pays.”
In a statement, the Government said: “This will be the largest ever increase in the minimum wage in cash terms and the first time it has increased by more than £1.
"The size of this increase is driven by the strength of pay growth across the economy, which is forecast to continue into next year.”
Claire Reid