People not on DWP benefits will spot extra £57 in bank account

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The combination of reductions in National Insurance and energy bills has resulted in an average household saving of £57, according to the Government -Credit:Getty Images/iStockphoto

Individuals not receiving DWP benefits can expect to see an additional £57 in their bank accounts this month, as the nation grapples with the Cost of Living crisis. The boost comes from National Insurance cuts for workers, a move confirmed by the Conservative government earlier in the year.

Chancellor Jeremy Hunt announced changes to National Insurance contributions earlier this year in response to the Cost of Living crisis. Additionally, energy bills have seen a decrease, offering some relief due to a reduction in the Ofgem price cap. The combined effect of National Insurance and energy bill reductions has led to an average household saving of £57, according to the Government.

Stephen Hankinson, an energy efficiency expert at Electric Radiators Direct, remarked: "The past few years have proven tough financially for Brits, so it's great to see a positive change in the cost of energy, reflecting nicely on the amount of our salary spent on bills."

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Furthermore, the main rate of Class 4 National Insurance contributions will be cut by 2 percentage points, moving from 8 percent to 6 percent. This follows the previously announced reduction at Autumn Statement 2023, meaning that from 6 April 2024, the main rate will go down from 9 percent to 6 percent, reports BirminghamLive.

Mr Hunt commented: "We're on the right track we've been able to slash National Insurance to return hundreds of pounds back into the pockets of hard-working Brits because of the decisions we've made to manage the economy responsibly.

"Over the years ahead we want to get rid of National Insurance completely for workers it is an unfair double tax on work and we've shown we can protect spending on public services while eliminating it."

As a result of the combined cuts to National Insurance, a hard-working family with two earners each earning the average salary of £35,400 would find themselves financially better off by £1,826.