What does the NICs cut mean for employees?
The chancellor is cutting the main rate of national insurance contributions (NICS) paid by employees from 12% to 10% with effect from 6 January 2024 - a move benefiting 27 million workers.
The Treasury said this change meant an average worker paid £35,400 would enjoy a tax cut of more than £450 in 2024-25.
Employees pay NICs on their wages, while employers also make contributions for staff. NICs raise huge sums for Treasury coffers and are used to cover the cost of certain benefits and the state pension.
However, commentators said the government was giving with one hand but, in many cases, taking back a lot more with the other, as a result of the previously announced freezing of personal income tax thresholds until 2028.
I'm self-employed - what has Hunt done for me?
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