National Insurance increase reversed from November 6

The 1.25 percentage point rise in National Insurance will be reversed from 6 November, the Chancellor Kwasi Kwarteng has announced today.

The UK government has said it will also cancel the planned Health and Social Care Levy – a separate tax which was coming into force in April 2023 to replace this year’s National Insurance rise.

“This will help almost 28 million people across the UK keep more of what they earn, worth an extra £330 on average in 2023-24, with an additional saving of around £135 on average this year.”

Chancellor of the Exchequer Kwasi Kwarteng said:

“Taxing our way to prosperity has never worked. To raise living standards for all, we need to be unapologetic about growing our economy.”

“Cutting tax is crucial to this – and whether businesses reinvest freed-up cash into new machinery, lower prices on shop floors or increased staff wages, the reversal of the Levy will help them grow, whilst also allowing the British public to keep more of what they earn.”

More here: https://www.gov.uk/government/news/national-insurance-increase-reversed