Policy background
The Act is intended to deliver part of the Government’s long-term plan to grow the economy and reform the tax system. At a time of rising living costs, the Act is intended to provide a cut in the amount of NICs paid for 29 million working people, worth £450 to the average employee and £350 to the average self-employed person. The Government has chosen to prioritise those in work because it believes that is the best way to encourage economic growth and reducing NICs is the best way to target these individuals.