National Insurance Contributions
(asked on 14th May 2024) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the (a) number of people who will financially benefit from the National Insurance reduction announced in the Spring Budget 2024 and (b) average (i) financial gain from that reduction and (ii) cumulative financial gain from reductions to National Insurance announced in the Autumn Statement 2023 and Spring Budget 2024, by region.
The estimated number of people who financially benefited from the National insurance reduction in the Autumn Statement and Spring Budget and the associated financial gain for an average employee on £35,404 can be seen in Table 1 below:
Table 1: gain for an average employee on £35,404 from reductions to National Insurance announced in the Autumn Statement 2023 and Spring Budget 2024
2024 to 2025 tax year impacts | Autumn Statement only | Spring Budget only | Cumulative Spring Budget and Autumn Statement |
Number of people who financially benefitted from the NICs reduction, 1000s | 29,300 | 29,500 | 29,500 |
Gain for average employee with mean employee salary of £35,404 | £457 | £457 | £913 |
The estimated average financial gain among those benefitting from both the Autumn Statement 2023 and Spring Budget 2024 National insurance reduction, by region, can be seen in the Table 2 below:
Table 2: average financial gain and cumulative gain from reductions to National Insurance announced in the Autumn Statement 2023 and Spring Budget 2024, by region
2024 to 2025 tax year impacts by region | Number of gainers, 1000s | Average gain, Spring Budget only | Average cumulative gain, Autumn Statement and Spring Budget |
North East | 1,060 | £316 | £632 |
North West and Merseyside | 3,140 | £321 | £644 |
Yorkshire and the Humber | 2,330 | £313 | £628 |
East Midlands | 2,110 | £322 | £645 |
West Midlands | 2,500 | £322 | £645 |
East of England | 2,830 | £360 | £720 |
London | 4,350 | £381 | £763 |
South East | 4,120 | £369 | £738 |
South West | 2,420 | £327 | £655 |
Northern Ireland | 807 | £308 | £618 |
Scotland | 2,430 | £338 | £677 |
Wales | 1,240 | £320 | £642 |
Total | 29,500 | £341 | £683 |
These are the modelled average impacts rather than the impacts for an average full time employee (on a given salary), for example the £900 gain previously published for the cumulative impacts.
The Autumn Statement 2023 National insurance reduction estimates are based upon the 2019 to 2020 Survey of Personal Incomes, projected in line with economic assumptions consistent with the Office for Budget Responsibilities November 2023 Economic and Fiscal Outlook.
The Spring Budget 2024 National insurance reduction estimates and cumulative estimates of both policies are based upon the 2019 to 2020 Survey of Personal Incomes, projected in line with economic assumptions consistent with the Office for Budget Responsibilities March 2024 Economic and Fiscal Outlook.