Millions of households are set to get a £500 per year cash boost from this week.
National Insurance contributions rose by 1.25 percentage points in April as part of plans to help pay for social care and deal with the NHS backlog. But now, that will be reversed and funding for health and social care services will be maintained at the same level as if the levy were in place.
The reversal of April’s rise in National Insurance takes effect across the UK from today, November 6. Added to July’s increase in National Insurance thresholds, almost 30 million people will be £500 better off on average next year due to the changes. Meanwhile, 920,000 businesses will save an average of almost £10,000.
READ MORE: Urgent message to households expecting their cost of living payment next week
The tax cut was announced by the government on September 22, as part of the reversal of the Health and Social Care Levy. Working people across the UK will begin receiving the tax cut in their payslips this month, with all expected to have started receiving it by February.
Most employees will start to receive this tax cut directly through payroll between November and February - although some may be delayed until December or January. It takes effect in all parts of the UK and means working people will keep more of the money they earn.
Receive newsletters with the latest news, sport and what's on updates from the Liverpool ECHO by signing up here
READ NEXT:
Aldi shopper 'got a fright' as she spotted 'rude' dog toy
People are only just realising what fourth side of a cheese grater is for
ITV The Chase bosses step in to correct Bradley Walsh after round ends
Aldi and Argos shoppers ditching air fryers after becoming 'addicted' to cheaper alternative
Aldi shopper refused alcohol as worker thought 'her kids were her mates'
