Jeremy Hunt is set to cut national insurance for 28 million people as he unveils a crackdown on benefits claimants in today’s autumn statement.
The chancellor is expected to reduce the headline rates of national insurance for employees and the self-employed.
A one per cent cut would be worth £380 a year to someone earning more than £50,000 but could cost the government somewhere in the region of £5bn.
Rishi Sunak is also set to threaten to cut benefit payments to hundreds of thousands of people with mobility and mental-health problems unless they find work they can do from home.
The prime minister will tell them to find jobs or face a benefits cut of £4,680 a year if they do not in a bid to get more people back to work.
But leading disability charity Sense warned the plans risked punishing disabled people as they would be put under “more pressure to find work” without the necessary support required to do so.