The Chancellor, Rishi Sunak, has announced an increase in the Primary Threshold (PT); meaning workers will pay less National Insurance.
After mounting pressure from the public due to the cost of living crisis, the Chancellor has reduced the National Insurance burden on the lowest paid workers.
The government has already increased National Insurance Contributions by 1.25%, starting April 2022, before becoming a separate tax in April 2023 as the Health and Social Care Levy.
The government’s announcement means that workers will begin paying National Insurance at a higher threshold; lower paid workers will still qualify for the benefits of National Insurance but will have lower contributions.