Millions of people will have their National Insurance cut from tomorrow – here’s how much you’ll save

Millions of struggling Britons will receive National Insurance relief as the new tax year begins this weekend, helping to ease the burden of the cost of living crisis.

From 6 April (the first day of the 2024-25 tax year), the main rate of employee National Insurance will drop from 10% to 8%.

The 2% cut is a centerpiece of Chancellor Jeremy Hunt’s spring budget, which he said would benefit 27 million workers.

The government said this would save the average worker £35,400 a year, more than £900, when combined with previous cuts announced in the Autumn Statement.

Mr Hunt’s move is aimed at trying to chip away at Labour’s overwhelming lead in opinion polls as a general election looms.

Hunt said the cuts showed “we support those who work hard and fire the starting gun in our long-term goal of ending unfair double taxation of jobs”.

How much you could save with the 2p National Insurance cut, based on annual income

£15,000 – Take home pay of £14,320 in 2024/25 compared to £14,235 in 2023/24 – an increase of £85

£20,000 – Take home pay of £17,920 in 2024/25 compared to £17,660 in 2023/24 – an increase of £260

£25,000 – Take home pay of £21,520 in 2024/25 compared to £21,085 in 2023/24 – an increase of £435

£30,000 – Take home pay of £25,120 in 2024/25 compared to £24,510 in 2023/24 – an increase of £610

£35,000 – Take home pay of £28,720 in 2024/25 compared to £27,935 in 2023/24 – an increase of £785

£40,000 – Take home pay of £32,320 in 2024/25 compared to £31,360 in 2023/24 – an increase of £960

£45,000 – Take home pay of £35,920 in 2024/25 compared to £34,786 in 2023/24 – an increase of £1,135

£50,000 – Take home pay of £39,520 in 2024/25 compared to £38,210 in 2023/24 – an increase of £1,310

£55,000 – Take home pay of £42,457 in 2024/25 compared to £41,138 in 2023/24 – an increase of £1,320

£60,000 – Take home pay of £45,357 in 2024/25 compared to £44,038 in 2023/24 – an increase of £1,320

£65,000 – Take home pay of £48,257 in 2024/25 compared to £46,938 in 2023/24 – an increase of £1,320

£70,000 – Take home pay of £51,157 in 2024/25 compared to £49,838 in 2023/24 – an increase of £1,320

You can use the tax calculator below to find out whether all the changes announced in the Spring Budget will make you better off or worse off in the new tax year: