Jeremy Hunt has unveiled a further 2 per cent cut to national insurance in his 2024 Budget, as the chancellor seeks to entice voters ahead of this year’s general election.
Combined with last autumn’s identical national insurance cut, Mr Hunt claims the two tax giveaways will leave the average worker £900 better off.
Other measures to support people that were announced on Wednesday include an extension of the Household Support Fund and a rise in the earnings threshold for child benefit, from £50,000 to £60,000.
But economists have warned that the national insurance reduction will still plunge thousands of families into poverty, with nearly half of the £10.4bn giveaway set to end up in the pockets of the richest 20 per cent of households.
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The New Economics Foundation had warned that a 1p cut alone would push more than 55,000 people into relative poverty, whereas it said Mr Hunt could instead have lifted 384,000 people out of poverty if he had chosen to put the same amount into boosting universal credit.
The Independent’s Budget calculator, created by tax advisory firm Blick Rothenberg, below will help you to determine whether you are better or worse off following Wednesday’s statement.
Enter a few details such as how much you earn, whether you are single, if you in a couple or have a family to see how your finances will be impacted.