National Insurance Rate Reduction: How Much Do I Pay?
1 min read

National Insurance Rate Reduction: How Much Do I Pay?

Chancellor Jeremy Hunt stated that the autumn statement’s pre-election cut means that households with two earners will be almost £1,000 better off. The government estimates that this decrease will save the average worker on a £35,400 salary around £450 in 2024. Hunt explained, “Millions of people working across various industries will see an improvement in their financial situation, with the average full-time nurse saving £520, a junior doctor £750, and a teacher £630.” The Chancellor of the Exchequer Jeremy Hunt said, “Today’s record cut to National Insurance worth nearly £1,000 for a household means that 27 million hard-working Brits will have a little more cash in their pockets.”

The Government noted that the amount of National Insurance individuals pay depends on their employment status and earnings. From January 6, 2024, most people’s National Insurance rates will be 10% if they are paid £242 to £967 a week and 2% if the amount paid is over £967 a week. Payments may vary for the self-employed.

To pay National Insurance, it is taken from wages before they are received, as shown on a payslip. Furthermore, HM Revenues and Customs (HMRC) launched an online tool to provide an estimate on how much the change in the National Insurance rate will affect people.

National Insurance contributions fund benefits and pensions, and in some instances, are put toward these expenses. It is mandatory to pay National Insurance if an individual is over 16, earning more than £242 per week from one job, or self-employed, with profits of more than £12,570 a year. To find out more information or to calculate the National Insurance rate, people can visit the Gov.uk website.