National Insurance Changes

Changes to National Insurance contributions (NICs) were announced by Chancellor Jeremy Hunt in the Autumn Statement.

Mr Hunt used his Autumn Statement speech to cut the main rate of employee NICs from 12% to 10%. This is to take effect from 6 January 2024.

For the self-employed, the Chancellor also abolished Class 2 NICs and cut Class 4 NICs from 9% to 8%, effective from 6 April 2024.

National Minimum Wage and National Living Wage Increases

From 1 April 2024: 

The National Living Wage (NLW) will increase by 9.8% from £10.42 to £11.44 an hour.  This represents an increase of over £1,800 to annual earnings.  The National Living Wage had previously been payable to those aged 23 and over and will now apply for eligible UK workers across the UK aged 21 and over. 

National Minimum Wage (NMW) rates for 18–20-year-olds, and 16-17-year-olds and apprentices, will also see an increase to £8.60 and £6.40 respectively.   

Real Living Wage to increase by 10%

The Real Living Wage is set to increase by 10%.

The rate will rise to £12 an hour across the UK and £13.15 an hour in London.

Unlike the National Living Wage (NLW), the Real Living Wage is a voluntary pay scheme calculated based on rising living costs.