Will you benefit from the Chancellor's National Insurance cut? The latest Budget measures explained

ITV News explains the National Insurance change, which will take effect from this April

Two percentage points - or 2p in the pound - is being knocked off National Insurance, as announced by the Chancellor Jeremy Hunt in the latest Budget.

With Conservative support at it's lowest in decade, it's a move designed to appeal to working voters ahead of this year's General Election.

But it'll cost the Treasury an estimated £10bn, with Labour arguing the price will be cuts to public spending and tax hikes elsewhere.

So are you set to benefit? And how much by?

Employees and self-employed workers currently pay 10% on earnings between £12,570 and £50,270 in Class 1 National Insurance contributions.

For the average worker earning £35,000, reducing National Insurance to 8% would mean they have £449 extra in their pocket over the course of a year.

For someone earning £25,000 that's £249 . And those on £50,000 it's £749.

Beyond that, any additional earnings are taxed at 2% and won't be affected by the cut to National Insurance.

When will the change take effect and where?

The change will take effect from this April, at the start of the new tax year.

It's a UK-wide tax, so applies across all four nations.

Could there be a general election in May?
Large parts of the Chancellor's budget - on national insurance, for instance - remained as predicted in recent days. Credit: PA Images

Who does it apply to?

It only applies to earned income, so pensioners won't be impacted, nor will those who receive income from savings and investments such as property.

For many the benefit of the tax cut will be outweighed by the Treasury’s decision to freeze the salary thresholds for both National Insurance and income tax in cash terms.

Calculations by the Resolution Foundation show only those paid between £27,000 and £59,000 would be better off off as a result of both the Autumn Statement and Wednesday’s Budget, once the freeze in thresholds are accounted for.

Higher earners will be worse off by around £500.

And those paid £16,000 will be worst off as they'll lose more from threshold freezes than they gain from cuts.

Have you heard our podcast Talking Politics? Every week Tom, Robert and Anushka dig into the biggest issues dominating the political agenda…