Achi news desk-
The main rate of national insurance for employees will be cut by 2% from 10% to 8% as of April 6.
This is the second cut in the past six months after an identical reduction from 12% to 10% following last year’s Autumn Statement.
Combined the two cuts will save the average worker £35,400 more than £900 a year, the government said.
Despite the NI cuts, some other thresholds may act as a “stealth tax” and make people feel worse just by leaving them unchanged.
Frozen income tax brackets pull people into higher ranks over time as their wages rise.
The standard personal allowance is £12,570, which is the amount of income on which someone does not have to pay tax.
Prime Minister Rishi Sonk said: “Hard work is one of my core values ​​and the progress we have made in the economy means we can reward work with a tax cut worth £900 for the average earner.
“This is the next step in our plan to put an end to the unfairness of double taxation by abolishing the National Insurance in the long term.”
Rachel Reeves, Labour’s shadow chancellor, said: “Every time Rishi Sonk goes on TV claiming he’s cutting taxes, he insults the intelligence of hard-working families.”
She accused the government of “giving with one hand and taking with the other.”
Changes in child allowances
Millions of families claiming child benefit should automatically receive increased payments starting this week.
HMRC has confirmed that families with one child will now receive £1,331 a year, an increase of more than £83.
Families will also receive £881 a year for each additional child they have after that, an annual increase of £54.60.
From 6 April 2024, families where the highest earner has a salary of up to £60,000 a year will not be subject to the High Income Child Benefit Charge (HICBC). Previously, a person with an annual income of £50,000 or more had to pay In the payment of the charge if he or his spouse were to receive child allowance.
Laura Trott, Chief Financial Secretary, added: “We are ending the unfairness of the Child Benefit system, resulting in 170,000 families no longer having to pay back Child Benefit, and nearly half a million families saving an average of around £1,300 next year.
“The legacy of the pandemic and the war in Ukraine has depressed everyone’s cost of living. But, by making tough decisions, the economy is starting to turn a corner, and now we can provide additional support to parents.”
The pensioners were set for an extra £900
Pensioners will see their state pension increase by up to £900 next month when an announcement made in last year’s Autumn Statement comes into effect.
Chancellor Jeremy Hunt has confirmed that the triple lock on the pension will be respected, with state benefits due to rise from 8 April.
As part of the triple lock – which guarantees an increase according to the average salary, inflation or 2.5%, whichever is higher – the pension will increase by 8.5% next month.
He told MPs: “The triple lock has helped lift 250,000 older people out of poverty since it was launched in 2011.
“It was a lifeline for many in times of inflation.
“We are honoring our commitment to the triple lock in full. We will increase the new state pension by 8.5%, worth up to £900 more a year.”
