Chancellor Jeremy Hunt has announced the government will cut the main rate National Insurance payments by two per cent.

He told MPs in his autumn statement that the rate of national insurance for workers earning between £12,570 and £50,270 would reduce from 12 per cent to 10 per cent from January.

It was a change Mr Hunt said would "help 27 million" people by putting extra money in their payslips.

Jeremy Hunt told the Commons he would bring forward urgent legislation to Parliament to introduce the cut in national insurance for employees “from January 6, so that people can see the benefit in their payslips at the start of the new year”.

He added: “It means someone on the average salary of £35,000 will save over £450. For the average nurse, it is a saving of over £520 and for the typical police officer it is a saving of over £630 every single year.”

Reacting to the news, Money Saving Expert Martin Lewis posted on X: "THE RABBIT FROM THE HAT: He's cutting employee National Insurance rates currently 12% on income between £12,570 and £50,270 to 10%. Someone on average salary will save £450/yr from 6 January 2024.

"This is a tax cut for workers (not for other earnings) which goes some way to cover the cost of freezing the tax thresholds."

Elsewhere in the autumn statement, Mr Hunt confirmed that the Government would be honouring the triple lock on pensions, and increasing state pensions next year.

Under the triple lock – which guarantees an increase in line with average earnings, inflation or 2.5%, whichever is highest - pensions will increase by 8.5 per cent in April.

He told MPs: "The triple lock has helped lift 250,000 older people out of poverty since its inception in 2011.

"It has been a lifeline for many during times of inflation.

"We honour our commitment to the triple lock in full. We will increase the new state pension by 8.5 per cent, worth up to £900 more a year."

Mr Hunt also confirmed the Government would increase Universal Credit and other benefits by 6.7 per cent.

The rise, in line with September's inflation figures, will come into force from April next year, and will be worth an "average increase of £470 for 5.5 million households", the Chancellor said.

National Living Wage Rise

The autumn statement came after Mr Hunt had announced a rise in the National Living Wage which would equate to an extra £1,800 for full-time workers.

The boost will see the National Living Wage increase by more than £1 an hour, from £10.42 to £11.44, from April.

Eligibility for the National Living Wage will also be extended by reducing the age threshold to 21-year-olds for the first time. 

a wage boost to £8.60 per hour – a £1.11 hourly pay bump.

The Department for Business and Trade estimate 2.7 million workers will directly benefit from the 2024 National Living Wage increase.

Mr Hunt said: “Next April all full-time workers on the National Living Wage will get a pay rise of over £1,800 a year. That will end low pay in this country, delivering on our manifesto promise.

“The National Living Wage has helped halve the number of people on low pay since 2010, making sure work always pays.”