天美影院

• Progress made on economy means government is able to cut taxes for hard working people
• Saving worth 拢450 for an average worker earning 拢35,400 a year

Millions of workers are going to start seeing a boost to their take home pay today as January鈥檚 pay comes into bank accounts across the UK.

With millions of monthly earners getting paid today (Wednesday 31 January 2024), a household with two average earners will be starting to see a nearly 拢1,000 a year benefit from the Chancellor鈥檚 record personal tax cut.

Thanks to the progress made against its economic priorities, the government announced it will cut National Insurance by 2p from 12% to 10% at the Autumn Statement and made sure it took effect within weeks of the announcement, as part of its plan to reward work and grow the economy. The change is a more than 15% reduction in National Insurance, saving 拢450 this year for the average salaried worker on 拢35,400.

Millions of people working different jobs across hundreds of industries will now be better off. To a pub landlord that鈥檚 拢418 a year, a bus driver 拢328, a nurse 拢527. A teacher will pay 拢635 less in National Insurance contributions this year.

Today鈥檚 historic NICs cut takes effect with the government having faced the legacy of Covid-19, and global instability with war in Ukraine and the Middle East.

In the past year, inflation has halved; the economy has recovered more quickly from the pandemic than first thought; and debt is on track to fall. The government is sticking to the plan and is building a stronger economy where hard work is rewarded and ambition and aspiration are celebrated.

Chancellor of the Exchequer Jeremy Hunt said:

鈥淚 never shied away from making the tough decisions needed yesterday to cut taxes today.

鈥淭his January pay boost for hard-working Brits is part of our plan to grow the economy and build a brighter future where hard work is always rewarded, relieving pressure on UK workers by putting around 拢450 back in their pockets.鈥�

The cut means that for those on average salaries, personal taxes would be lower in the UK for single parents with no children than every other G7 country, based on the most recent OECD data. The UK also has the most generous starting allowances for income tax and social security contributions in the G7.

To mark the tax cut, earlier this month HMRC launched an聽聽to help people understand how much they could save in National Insurance this year.聽

The tool uses salary information to give employees personalised estimates of how much they could save because of the government鈥檚 changes, and is hosted on the government鈥檚 .

The last major cut to the current personal tax system of today鈥檚 magnitude was when the National Insurance personal allowance increased from 拢9,880 to 拢12,570. This was the largest ever cut to a personal tax starting threshold, allowing working people to hold on to an extra 拢2,690 free from tax whilst last year taking around 2.2 million people out of paying tax altogether.

The cut to National Insurance combined with above-inflation increases to tax thresholds since 2010 means that the average earner will pay over 拢1,000 less in personal taxes than they otherwise would have done.

The independent Office for Budget Responsibility (OBR) says that, by 2028-29 this tax cut will increase the number of people in employment by 28,000 alongside a substantial economic benefit from those in work increasing their hours which the OBR forecast will be equivalent to 79,000 on a full-time equivalent basis. Overall, the OBR says that by 2028-29 this measure will increase the number of hours worked by new and existing employees by 0.3%, or 94,000 in full-time equivalent terms.

At the Autumn Statement the Chancellor Jeremy Hunt announced the biggest package of tax cuts to be implemented since the 1980s. In addition to today鈥檚 action, he announced a National Insurance cut for 2 million self-employed people, which will take effect on 6 April 2024 and is worth 拢350 for the average self-employed person on 拢28,200. He also made full expensing permanent, which at 拢11 billion per year is the biggest business tax cut in modern British history helping businesses invest for less. Over 200 business leaders told the government that it would have the single most transformational impact on business investment and growth.

The OBR says these two measures will increase the number of people in work and grow the economy.

He also announced the biggest ever increase to the National Living Wage, froze alcohol duty for six months and extended cuts to business rates relief for the high street.

Further information

Today鈥檚 tax cut combined with above-inflation increases to tax thresholds since 2010 means that the average earner will pay over 拢1,000 less in personal taxes than they otherwise would have done - this is based on the mean earnings for all employees from ASHE 2023. The income tax and employee NICs liability is compared to a hypothetical counterfactual where tax rates are kept unchanged and thresholds are uprated in line with inflation every year.

• Use HMRC鈥檚 new to estimate yearly national insurance savings thanks to the 2p cut

• Visit the government鈥檚

• National Insurance factsheet

• Latest

Who does this help?

Source: Unless stated otherwise, the earnings are taken from the latest covering the 2022-23 tax year.

• Average full-time supermarket worker: 拢121
• Average retail sales assistant: 拢179
• Average full-time pub landlord: 拢418
• Average sports industry worker: 拢226
• Average creative industry worker: 拢350
• Average teacher: 拢635
• Average teaching assistant: 拢158
• Average librarian: 拢215
• Average university lecturer: 拢600
• Average electrical manufacturer: 拢250
• Average heat pump installer: 拢545
• Average fishing industry worker: 拢176
• Average agricultural worker: 拢225
• Average community support worker: 拢341
• Average bricklayer: 拢360
• Average construction worker: 拢353
• Average worker in scientific research: 拢567
• Average worker in the tech industry: 拢656
• Average train driver: 拢754
• Average bus driver: 拢328
• Car salesperson: 拢280
• Average lorry driver: 拢486
• Junior State Pension admin worker: 拢263
• Senior State Pension admin worker: 拢383
• Junior Jobcentre worker: 拢263
• Senior Jobcentre worker: 拢383
• Average social care worker: 拢106
• Band 6 (Senior) nurse: 拢601 (source: )
• Average full-time nurse: 拢527 (source: )
• Junior doctor: 拢754
• Average police officer: 拢635
• Immigration officer: 拢369 (source: )
• Average Paralegal: 拢311
• Probation office: 拢384
• Prison officer (below principal officer): 拢354
• Average Armed Forces service personnel: 拢518