National Insurance cut in Autumn Statement

Jeremy Hunt has opted to cut the main employee National Insurance rate by 2%, from 12% to 10% from 6 January.

The Chancellor said this will save somebody on a salary of £35,000 over £450 pr year.

He 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.”

National Insurance has also been reduced for the self-employed.

The “Class 2%” flat National Insurance charge of £3.45 for those earning more than £12,570 per week has been scrapped, saving £192 per year.

Meanwhile, self-employed people who pay “Class 4” National Insurance at 9% on earnings between £12,570 and £50,270 will see that cut by 1% to 8% from April.

Hunt added: “Taken together with the abolition of the compulsory Class 2 charge, these reforms will save around two million self-employed people an average of £350 a year from April.”

The minimum wage – known officially as the National Living Wage – will also rise from £10.42 to £11.44 per hour in April next year.