Millions of households are set to have an extra £500 in their pockets every year from this week. National insurance (NI) contributions went up by 1.25 percentage points back in April, which the UK government said was to help pay for social care and fund the struggling NHS.
But although most of the measures announced in Kwasi Kwarteng's doomed September mini-budget have been axed, the former chancellor's decision to reverse the April NI increase has been retained. The cancellation of the rise came into effect on November 6, meaning millions of people will have extra money in their pockets from this week.
The measure will make a big difference to households struggling to cope with the cost of living crisis as well as businesses grappling with huge running costs heading into the winter.
