Exact date National Insurance cut to come in as average worker to get £450 boost

Jeremy Hunt announced another cut to National Insurance as he delivered his Spring Budget in the House of Commons.

As he delivered his statement to MPs on Wednesday afternoon, the chancellor confirmed the employee National Insurance rate would be slashed by 2 per cent - from 10 per cent to 8 per cent - in a move that would see millions of workers take home more in their pay packet.

Mr Hunt also confirmed that the rate of self-employed National Insurance will be cut from 8 per cent to 6 per cent.

READ MORE: National Insurance calculator - see how much you will save after Budget tax cut

The chancellor said the tax cut would mean an additional £450 a year for the average employee, or £350 for someone self-employed. The new cut to National Insurance will come into force from April 6, the chancellor confirmed.

It comes after the rate was previously slashed from 12 per cent to 10 per cent back in January. Mr Hunt said the two cuts together would see the average worker save around £900 a year.

Addressing MPs, the chancellor said: "If you get your income from having a job, you pay two types of tax – national insurance contributions and income tax. If you get it from other sources you only pay one. This double taxation of work is unfair. The result is a complicated system that penalises work instead of encouraging it.

“If we are to build a high wage, high skill economy not dependent on migration, if we want to encourage people not in work to come back to work, we need a simpler, fairer tax system that makes work pay. That’s why I cut national insurance contributions in the autumn.”

Mr Hunt said the second rate cut was possible "because of the progress we have made bringing down inflation, because of the additional