National Insurance 'tax cut' comes in today for 30 million workers
The Government says 70% of workers will pay less National Insurance
Last updated 6th Jul 2022
The Government says around 30 million people in the UK will be paying less personal tax from today as new rules around National Insurance come in.
The Treasury say the new rules could save people up to ÂŁ330 per year.
The figures are all because of a rise in the amount people can earn before they start paying National Insurance - increasing from ÂŁ9,880 to ÂŁ12,570 from today.
The Government says the ÂŁ6 billion tax cut will result in 2.2 million people in the UK no longer having to pay any personal tax and that 70% of UK workers will pay less National Insurance.
The Prime Minister back the plans
The Prime Minister said: “We know it’s tough for many families across the UK, but we want you to know that this government is on your side.
“Today’s tax cut means around 70 per cent of British workers will pay less National Insurance - even after accounting for the Health and Social Care Levy that is funding the biggest catch up programme in NHS history and putting an end spiralling social care costs.
“So whether you are a receptionist, work in hospitality or are a delivery driver, this tax cut is likely to make you and your family better off.”
Follows National Insurance increase in April
The level of National Insurance increased in April to help fund health and social care as part of a budget previously set out by former Chancellor Rishi Sunak.
From the 6th April, workers have been paying an extra 1.25pence per pound in National Insurance.
There were calls to scrap this increase to help people struggling due to the Cost of Living crisis.
The rise went ahead but the Chancellor introduced this new National Insurance system so that people would have to earn more before they had to pay it.
How will this cut impact you?
The government have created an online tool to estimate the amounts some people could save between now and this time next year.