Workers are set to see more money in their pay packets as a rise in National Insurance is being reversed today.
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.
Most employees will see a cut to their contribution directly via their employer’s payroll in their November pay – although some may be delayed until December or January.
Almost 28 million people will keep an extra £330 of their money on average next year, while 920,000 businesses will save an average of almost £10,000, the Treasury said.
The measure, introduced by Boris Johnson’s government with Rishi Sunak as chancellor, was reversed by former chancellor Kwasi Kwarteng in his controversial mini-budget last month.
Its scrapping is one of few economic policies planned by Liz Truss and Mr Kwarteng that has not been ditched by new chancellor Jeremy Hunt.
Source: Sky News