National Insurance cut 'will make financial planning challenging'

Industry professionals weigh in on the immediate impact of NI cut

Sahar Nazir
clock • 4 min read

This Saturday 6 January marks the day the chancellor’s 2p cut to National Insurance (NI) contributions comes into effect for eligible UK workers.

As announced in the recent Autumn Statement, this cut will see the main rate of primary Class 1 NI contributions fall from 12% to 10%. National Insurance contributions are mandatory for individuals aged 16 or over, encompassing employees earning over £242 a week from a single job or self-employed individuals making a profit exceeding £12,570 annually. According to Quilter, the Chancellor's 2p NI reduction will result in an annual saving of £447.86 for the average UK worker or £8.61 per week. Aegon head of pensions Kate Smith warned that this will make financial planning challenging...

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