Hunt hands families an unexpected lifeline from rising costs

FAMILIES were offered a financial boost with a series of measures designed to ease the cost of living and reward hard work. This included being given a 2% National Insurance cut, with some contributions scrapped altogether, in an instant £350-a-year lift for those on the average £35,000 salary.

- Harvey Jones

In an unexpected tax cut that will boost the incomes of 27 million people, a worker on a typical £35,000 wage will be £450 better off, while the income of an average nurse will be boosted by £520.

Meanwhile, for self-employed people, Class 2 National Insurance paid by those earning more than £12,570 - is abolished from April, and Class 4 National Insurance - paid on profits between £12,570 and £50,270 - is cut from 9% to 8% from April.

Also boosting earnings, the legal minimum wage - officially known as the National Living Wage - will rise from £10.42 to £11.44 an hour from April. The Chancellor also announced plans to offer employees new choices on workplace pensions in a "groundbreaking" initiative.

Jeremy Hunt also hinted at further tax cuts in his forthcoming Spring Budget to assist families. Personal Finance Editor HARVEY JONES explains what it all means for Britain's households...

CHANCELLOR Jeremy Hunt always seems so pleased with himself that it is easy to assume that we should be just as pleased, too. Until we start doing our sums.

The Autumn Statement included a string of crowd-pleasers for working households, including National Insurance cuts, a freeze to alcohol and fuel duty, greater control over our pension pots, and a large hike to the National Living Wage.

The 2% National Insurance reduction was the big one.

It will save someone on £30,000 a year around £350, rising to £565 for those earning more than the higher rate tax threshold of £50,270.