Hm Treasury
- Average worker in Wales will be 701 better off a year as government cuts taxes
- Over 1.2 million workers in Wales will benefit as National Insurance cuts hit pay packets this month
- 27 million employees to benefit across the country from tax cuts that reward work and grow the economy
The typical worker in Wales will be 701better off thanks to successive cuts to employee National Insurance contributions (NICs), which hit pay packets this month.
27 million workers across the UK will see a boost to their take-home pay from 6 April, with over 1.2 million peopleto benefit in Wales alone.
The savings are a result of successive cuts to NICs announced by the Chancellor, slashing the main rate of employee NICs from 12% to 8% and the main rate of self-employed NICs from 9% to 6%.
These cuts are possible because the economy is turning a corner, thanks to the governments decisive action to bring inflation down from 11.1% to 3.4%. The government is sticking to its economic plan and in the longer-term, it has the ambition to cut NICs further, ending the unfair double tax on work.
Chancellor of the Exchequer Jeremy Hunt said:
The tax cuts coming into force this week show that our economic plan is working, putting 701 a yearback into the pockets of working people across Wales.
People will start to see this saving in their pay packet this month and, when its responsible to do so, we will go further ending the unfair double tax on those who earn their income through work.
Secretary of State for Wales David TC Davies said:
Im delighted that over 1.2 million workers in Wales will benefit from todays National Insurance cut, which is on top of the first 2p cut in January this year, putting 700 more into the typical workers pocket. Inflation is coming down as well, helping people feel better off as the economy is turning a corner.
Taking the NICs reforms across Autumn Statement and Spring Budget together, this is an overall tax cut worth over 20 billion per year, the largest ever cut to employee and self-employed National Insurance.
Due to the combined cuts to employee and self-employed NICs, the OBR forecast that total hours worked will increase by the equivalent of almost 200,000 full-time workers by 2028-29 and help grow the economy.
These changes mean that for single individuals on average salaries, personal taxes would have been lower in the UK than in France, Germany and every other G7 economy, based on the most recent OECD data.
ENDS
Notes to Editors
- The gain is based on an average salary of 30,101in Wales. Calculations are based on the mean all-employee annual earnings level, using the ONS Annual Survey of Hours and