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Sunak announces £3,000 rise in threshold for paying national insurance

01:06

Rishi Sunak raises national insurance threshold by £3,000 to £12,570

Rishi Sunak has raised the national insurance threshold by £3,000 to £12,570, in the “largest-ever” tax cut he has announced.

The chancellor sparked a surprise by scrapping plans to increase the threshold by just £300, announcing a “personal tax cut” worth £6 billion.

Mr Sunak delivered his spring statement on Wednesday, saying the move would compensate 70 per cent of workers who will be hit by the 1.25 per cent hike in national insurance contribution - kicking in next week.

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