At the Spring Statement in March, then Chancellor Rishi Sunak increased National Insurance thresholds for the 2022-23 tax year.

This means employees and self-employed people will pay National Insurance contributions on less of their income or profits.

The threshold increased by £2,690 from the current £9,880 to £12,570 from 6 July 2022, equalising the NICs and income tax thresholds for the first time, and potentially pointing towards a merger of income tax and NICs into a single threshold.

The £6bn tax cut will lift 2.2 million people out of paying any personal tax and will ensure people get to keep more of the money they earn. 

The rise in the threshold will cut tax by an average £330 per worker although the introduction three months into the new tax year means that the actual average saving will be £267.