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National Insurance Contributions

Answer

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.

Secondary information

Type

Written question

Reference

26294

Session

2023-24

Grouped for answer

Yes

Subjects

Decreases National insurance contributions

Contains statistics

Yes

Link

View this Written question on www.parliament.uk