Home Local news National Insurance cuts benefit 1.2 million workers in Wales

National Insurance cuts benefit 1.2 million workers in Wales

by Editor

A revised tax plan will place £701 back into worker’s pockets due to cuts to employee National Insurance contributions (NICs), benefitting 27 million UK workers, including 1.2 million people in Wales alone.

The savings stem from successive reductions to NICs implemented by the chancellor, lowering the main rate of employee NICs from 12 per cent to 8 per cent, and the primary rate of self-employed NICs from 9 per cent to 6 per cent.

These adjustments are achievable due to the economy’s positive shift, according to the UK Government, a result of the government’s decisive action in reducing inflation from 11.1 per cent to 3.4 per cent.

The gain is based on an average salary of £30,101 in Wales.

Calculations are based on the mean all-employee annual earnings level, using the ONS’ Annual Survey of Hours and Earnings for 2023.

Chancellor of the exchequer, Jeremy Hunt, said: “The tax cuts coming into force this week show that our economic plan is working, putting £701 a year back into the pockets of working people across Wales.

“People will start to see this saving in their pay packet this month and, when it’s responsible to do so, we will go further – ending the unfair double tax on those who earn their income through work.”

Secretary of state for Wales, David TC Davies, said: “I’m delighted that over 1.2 million workers in Wales will benefit from today’s National Insurance cut, which is on top of the first 2p cut in January this year, putting £700 more into the typical worker’s pocket.

“Inflation is coming down as well, helping people feel better off as the economy is turning a corner.”

This reform, alongside previous Autumn Statement and Spring Budget measures, equates to a total tax reduction exceeding £20 billion per year, making it the most substantial cut to both employee and self-employed National Insurance to date.

The Office for Budget Responsibility predicts the combined cuts to employee and self-employed NICs will increase total hours worked equivalent to nearly 200,000 full-time workers by 2028-29, fostering economic growth.

The modifications mean that single individuals on average salaries in the UK will have lower personal taxes than their counterparts in France, Germany, and the rest of the G7, according to the latest OECD data.

Source link

You may also like

Leave a Comment

About Us

Vale 50+ Strategy Forum is a proactive public engagement group, working tirelessly to ensure that older people’s opinions and views are taken into account in all local and national strategic and operational planning.

Vale 50+ Strategy Forum
logo vale50plus

Enter your username and password to log into your account