The measure was among several announcements made by chancellor Rishi Sunak in his Spring Statement.
Sunak told parliament that workers “would not pay a single penny of National Insurance or tax” until they earned £12,750. He said moving the National Insurance threshold by £3,000 was “the largest increase in a basic rate threshold ever”.
The chancellor also confirmed a cut in the basic rate of Income Tax from 20p to 19p, but not until 2024. He hailed it “the biggest tax cut to personal taxes in over a quarter of a century”.
