Chancellor Jeremy Hunt has announced the government will slash national insurance for up to 27 million workers.

During his autumn statement, he confirmed that national insurance will be urgently cut from 12 per cent to 10 per cent. While the cuts would usually be introduced in the next financial year, Mr Hunt said emergency legislation would be introduced to allow them to come into place from January 6, 2024.

Mr Hunt told the House of Commons that it would allow someone on an average salary of £35,000 to save over £450. The policy was announced alongside a boost to the National Living Wage which will see workers also earning more cash next year.

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Mr Hunt told MPs: "It means someone on the average salary of £35,000 will save over £450. For the average nurse, it is a saving of over £520 and for the typical police officer it is a saving of over £630 every single year.”

The National Living Wage will rise from £10.42 to £11.44 per hour from April 2024. The rise, worth up to £1,800 for a full time worker, was hailed by Mr Hunt as the "largest ever cash increase" in the National Living Wage.

Meanwhile, the higher wage will be extended to 21-year-olds and 22-year-olds for the first time ever. Prior to this, only those aged 23 and over were entitled to the extra cash.

Mr Hunt added: "Since the national living wage has been introduced, the proportion of people on low pay, defined as earning less than two thirds of national median hourly income, has halved. But at the new rate of £11.44 an hour it delivers our manifesto commitment to eliminate low pay altogether.

“That means by next year someone working full-time on the national living wage will see their real take-home after-tax pay go up not by 25% but by 30% compared to 2010.”