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• Millions of workers checking payslips tomorrow will see a tax cut
• As the economy turns a corner, the government is rewarding hard work, with over 拢900 a year boost for typical worker
• Marks another step in long-term ambition to end unfair double tax on work

There are 27 million employees in the UK, and tomorrow (Tuesday 30 April) millions of them on monthly salaries will wake up with a little more cash in their pockets, as the government鈥檚 Spring Budget cut to National Insurance appears in April鈥檚 pay-packets. Since autumn 2023, National Insurance Contributions (NICs) for workers have been slashed by a third 鈥� the largest cut to employee and self-employed NICs in history.

The main rate of employee National Insurance has been cut for 27 million workers from 12% to 8%, saving the average employee on 拢35,400 over 拢900 a year. An average full-time nurse will save 拢1,053, a typical junior doctor 拢1,508 and an average teacher 拢1,270.

These cuts are possible because the economy is turning a corner, thanks to the government鈥檚 decisive action that has helped bring inflation down from 11.1% to 3.2% and ensure borrowing costs start to fall. Because of this progress, the government can now cut taxes to reward work and grow the economy.

This marks another step towards the longer-term ambition to end the unfair double tax on work and abolish employee and self-employed NICs 补濒迟辞驳别迟丑别谤.听

These tax cuts 鈥� worth over 拢20 billion a year 鈥� have been achievable while protecting spending including keeping the Triple Lock and the government has commitment to going further only when it鈥檚 possible to do so.聽

Prime Minister Rishi Sunak聽said:

At the start of last year I made to pledge to half inflation. And because of the difficult decisions we have taken, inflation has more than halved and we are now able to reward work, and cut taxes for millions of workers who are seeing the benefit in their pay checks today.

We have now cut National Insurance by 拢900 because it鈥檚 unfair that workers pay double tax on their income. We need to make it much simpler and much fairer and we are going to continue cutting this tax until it鈥檚 gone 鈥� while continuing to protect pensioners with the triple lock and providing record levels of funding to the NHS.

Chancellor of the Exchequer Jeremy Hunt said:

We鈥檙e on the right track 鈥� we鈥檝e been able to slash National Insurance to return hundreds of pounds back into the pockets of hard-working Brits because of the decisions we鈥檝e made to manage the economy responsibly.

Over the years ahead we want to get rid of National Insurance completely for workers 鈥� it is an unfair double tax on work and we鈥檝e shown we can protect spending on public services while eliminating it.

The tax cuts to date mean that for single individuals on average salaries, personal taxes would be lower in the UK than every other G7 country, based on the most recent OECD data.聽

The smart nature of the tax cuts will also help grow the economy by bringing more people into the labour market. The Office for Budget Responsibility (OBR) expects that, as a result of these combined cuts, total hours worked will increase by the equivalent of almost 200,000 full-time workers by 2028-29.

To mark the record cuts to NICs, HMRC launched an updated聽聽earlier this month to help people understand how much they personally could save in National Insurance this year.聽

These cuts to reward work follow a raft of changes that came into force on 1 April and could save households up to 拢3,850 a year to help those struggling with cost-of-living while igniting the economy.

This includes a record increase in the National Living Wage from 拢10.42 an hour to 拢11.44, and a 12.3% drop in energy bills from the previous quarter. In addition, households can benefit from a separate increase to the Local Housing Allowance that will mean some of the poorest families on either Universal Credit or Housing Benefit will gain 拢800 a year on average.

Notes to editors

• Use HMRC鈥檚 new聽聽to see how much employees could save on NICs following both the cuts in January and April.
• Visit the government鈥檚聽.
• For more key facts, please visit the聽personal tax factsheet.
• To view photos from the Chancellor鈥檚 visit to a supermarket today to meet workers who are benefiting from the tax cut please visit the Treasury Flickr page at 聽. Photos will be uploaded this afternoon.聽聽

Who does this help?

The combined cuts to National Insurance mean:

• a hard-working family with two earners on the average salary of 拢35,400 each will be better off by 拢1,826
• an average full-time nurse on 拢38,900 will be better off by 拢1,053
• a senior nurse with five years experience on 拢42,618 will be better off by 拢1,202
• the average police officer on 拢44,300 will be better off by 拢1,270
• a cleaner working night shifts on 拢21,058 will be better off by 拢340
• a typical junior doctor on 拢65,000 will be better off by 拢1,508
• a typical self-employed plumber on 拢34,361 will be better off by 拢846
• the typical teacher on 拢44,300 will be better off by over 拢1,270

As a result of National Insurance cuts at the last two fiscal events combined with the government鈥檚 cuts to the High-Income Child Benefit Charge:

• a couple with 2 school-aged children, both working full-time, one on 拢60,000 and one earning the average salary (拢35,400) will receive an annual gain of 拢4,600.
• a couple with 2 school-aged children, both working full-time, one on 拢80,000 and one earning the average salary (拢35,400) will receive an annual gain of 拢2,400.
• a single earner couple with 2 school-aged children, where one is working full-time on 拢62,000 will receive an annual gain of 拢3,500.