A cut in the rate of National Insurance was the most headline-grabbing of measures unveiled by Chancellor Jeremy Hunt in his Autumn Statement earlier this afternoon.
From 6 January, the rate will be cut from 12 percent to 10 percent, a move which the Chancellor told the Commons represented more than £400 extra a year in the pocket of the average worker.
In addition, the National Living Wage - the legal minimum - will be increased from the current £10.42 per hour to £11.44 per hour from April.
Other key measures in the statement include
- Universal Credit and disability benefits to increase by 6.7 percent
- An 8.5 percent state pension increase to £221.20 per week from April
- Benefit system changes to increase provision for home working for people with disabilities, people suffering sickness and the long-term unemployed
- New benefit rules meaning that unemployed people looking for work for longer than 18 months will be obliged to attend unpaid work placements, and those who refuse to seek work will have their benefits terminated after six months
- A freeze on Alcohol Duty
- Rate concessions for small businesses, notably in the retail, hospitality and leisure sectors
- Reduced Corporation Tax
The Chancellor described his measures as encouraging the country's economic growth in the aftermath of the pandemic and subsequent financial crises.
However, Labour says the National Insurance rate cuts will not offset the impact of previous tax hikes.
In addition, the National Living Wage - the legal minimum - will be increased from the current £10.42 per hour to £11.44 per hour from April.
Other key measures in the statement include
- Universal Credit and disability benefits to increase by 6.7 percent
- An 8.5 percent state pension increase to £221.20 per week from April
- Benefit system changes to increase provision for home working for people with disabilities, people suffering sickness and the long-term unemployed
- New benefit rules meaning that unemployed people looking for work for longer than 18 months will be obliged to attend unpaid work placements, and those who refuse to seek work will have their benefits terminated after six months
- A freeze on Alcohol Duty
- Rate concessions for small businesses, notably in the retail, hospitality and leisure sectors
- Reduced Corporation Tax
The Chancellor described his measures as encouraging the country's economic growth in the aftermath of the pandemic and subsequent financial crises.
However, Labour says the National Insurance rate cuts will not offset the impact of previous tax hikes.
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