29 million workers receive largest ever cut to National Insurance
Government is sticking to its economic plan and rewarding hard work in this month’s pay packet, with over £900 a year boost for typical worker
Signals government’s long-term ambition to end unfair double tax on work
29 million workers will see their hard work rewarded from tomorrow (6 April), as record tax cuts come into full force.
Since Autumn 2023, National Insurance Contributions (NICs) for workers have been slashed by a third – the largest cut to NICs in history – with a longer-term ambition to end the unfair double tax on work and abolish employee and self-employed NICs altogether.
Since January, the main rate of employee National Insurance has been cut for 27 million workers from 12% to 8%, saving the average employee on £35,400 over £900 a year.
Over 2 million self-employed people will benefit from the main rate of Class 4 NICs being cut from 9% to 6% alongside the abolition of the requirement to pay Class 2 NICs – simplifying the tax system and saving an average self-employed person on £28,000 over £650 a year.
These cuts are possible because the economy is turning a corner, thanks to the government’s decisive action to bring inflation down from 11.1% to 3.4% and ensure borrowing costs start to fall. Because of this progress, the government can now cut taxes to reward work and grow the economy.
The tax cuts – worth £20 billion a year – mean that those individuals on average salaries will now pay less in personal taxes than they would in any other G7 country.
Prime Minister Rishi Sunak said:“Hard work is one of my core values, and the progress we have made on the economy means we can reward work with a tax cut worth £900 for the average earner.
“This marks the next step in our plan to end the unfairness of double taxation of work by abolishing National Insurance in the long term.”
Chancellor of the Exchequer, Jeremy Hunt, said:“The record tax cuts taking effect tomorrow show our economic plan is working – because of the progress we’ve made we’re putting hundreds of pounds a year back into the pockets of working people across the country.
“It shows we stand behind those who work hard and fires the starting gun on our long-term ambition to end the unfair double tax on work.”
The tax cuts will also help grow the economy by bringing more people into the labour market. The Office for Budget Responsibility (OBR) expects that, as a result of these combined cuts, total hours worked will increase by the equivalent of almost 200,000 full-time workers by 2028-29.
To mark the record cuts to NICs, HMRC has launched an updated online tool to help people understand how much they personally could save in National Insurance this year.
They come into effect on the same day as an increase to the income threshold at which the High Income Child Benefit Charge (HICBC) starts – from £50,000 to £60,000 – taking 170,000 families out of paying the charge altogether.
The rate at which the HICBC is charged will also be halved from 1% of the Child Benefit payment for every additional £100 earnt above the threshold, to 1% for every £200, meaning Child Benefit will not be withdrawn in full until individuals earn £80,000 or higher.
As a result of these changes, 485,000 hard-working families will gain an average of £1,260 towards the costs of raising their children in 2024/25.
The government has also committed to consulting in due course on administering the HICBC on a household basis by April 2026, in recognition of how charging on an individual basis can sometimes lead to unfair outcomes, in particular for single parents and single earner families.
These changes to support hard-working families follow a raft of measures that came into force on 1 April that could save households up to £3,850 a year on average to help those struggling with cost-of-living while igniting the economy.
This includes a record increase in the National Living Wage from £10.42 an hour to £11.44, and a 12.3% drop in energy bills from the previous quarter. In addition, households can benefit from a separate increase to the Local Housing Allowance that will mean some of the poorest families on either Universal Credit or Housing Benefit will gain £800 a year on average.
And on Monday 8 April, the government will stand by its commitment to maintain the Triple Lock by raising the full basic State Pension by 8.5% to almost £170 a week, after the largest ever cash increase last year.
Changes like the introduction of the Triple Lock and new State Pension have meant pensioners are on average £1,000 better off than in 2010, according to the Resolution Foundation.
The Scottish Conservatives have called on the SNP government to support a “triple lock” of measures to protect young people at the centre of an exams ‘debacle’.
Pupils opened their National, Higher and Advanced Higher results this week – but an estimated 125,000 grades were lowered following moderation by the Scottish Qualifications Authority (SQA).
As a result, thousands of students received lower grades than had been estimated by their teachers.
And critics say the methods used by under-fire education chiefs have disproportionately impacted on young people from Scotland’s poorest areas.
On the day pupil protests were held in Edinburgh and Glasgow, Lothian MSP Miles Briggs backed a three-point plan to restore public confidence in the system.
The plan sets out:
– a guaranteed turnaround of 14 days for appeals
– appeals to be based on the individual ruling out awards based on a school’s historic performance, demographic, location or SIMD ranking
– the option for every pupil to take an examination in the autumn if they are still unhappy with grades awarded.
Lothian MSP, Miles Briggs, said: “Thousands of pupils across Edinburgh and the Lothians have been badly let down by SNP Ministers during this debacle.
“It is clear to everyone that the policy to disproportionately downgrade the results of students from schools in less affluent areas is simply not fair.
“The current situation can not be allowed to stand and steps must be taken to allow pupils to get the results that they deserve.
“These steps, set out by the Scottish Conservatives, would allow students to have every chance to get their proper grades and move forward with their futures.”
Scottish Labour says John Swinney has failed Scotland’s school pupils and they are calling for his resignation.
Scottish Labour leader Richard Leonard said: “This is not a decision we took lightly. Motions of no confidence have been sparingly laid in the history of the Scottish Parliament.
“But in the days since it emerged that thousands of school students had been marked down because of their schools’ past performance, Swinney has failed to acknowledge the scale of the crisis, and he has failed to announce a credible plan for re-dressing it.”
When the results were announced this week, Fiona Robertson, SQA’s Chief Executive and Scotland’s Chief Examining Officer, said: “Everyone receiving their results today can have confidence that their achievements and hard work have been rewarded.
“In a short space of time and amidst uniquely challenging circumstances for everyone, the Scottish education system has come together to ensure that candidates in 2020 can be certificated. This is a strong set of results and they should feel very proud of their achievements. They can now progress with confidence, to continued education, training or employment.
We have:
Delivered fairness to learners, through a consistent, evidence-based approach to awarding, supported by an Equalities Impact Assessment and a Child Rights and Wellbeing Impact Assessment.
Ensured safe and secure certification of our qualifications, taking difficult decisions when needed, following public health advice; and
Maintained the integrity and credibility of our qualifications system, ensuring that standards are maintained over time, in the interests of learners, through judicious moderation of grades.
Full information on our approach to certification is being published today.
I would like to thank the thousands of teachers and lecturers, SQA co-ordinators, school and college staff, local authorities, professional associations and national organisations, who have worked together to provide us with their candidates’ estimated grades, without which we would not be able to issue certificates today.
I would also like to acknowledge my sincere appreciation to all SQA staff and appointees who have worked very hard to deliver.”
SCQF level
National Qualification
2020 Entries
2020 Attainment
2020Attainment rate
2019 Entries
2019 Attainment
2019 Attainment rate
SCQF 2
National 2†
2,015
1,518
75.3%
2,070
1,596
77.1%
SCQF 3
National 3†
21,802
19,947
91.5%
19,285
16,958
87.9%
Skills for Work†
30
30
100%
13
0
0.0%
SCQF 4
National 4†
103,625
94,228
90.9%
104,866
92,845
88.5%
Skills for Work†
4,084
3,219
78.8%
3,698
2,869
77.6%
SCQF 5
National 5*
300,344
243,572
81.1%
288,552
225,594
78.2%
Skills for Work†
10,345
8,860
85.6%
8,023
6,633
82.7%
SCQF 6
Higher*
185,844
146,643
78.9%
185,914
138,972
74.8%
Skills for Work†
223
170
76.2%
204
160
78.4%
SCQF 7
Advanced Higher*
23,570
20,010
84.9%
23,460
18,627
79.4%
Total
651,882
636,085
Scottish Baccalaureate*
152
116
76.3%
157
109
69.4%
* For National 5, Higher and Advanced Higher, which are graded, the attainment and attainment rate is based on Grade A-C attainment. The Scottish Baccalaureate attainment is based on the total number of passes (“Distinction” or “Pass” outcomes).
†For National 2 to National 4, and Skills for Work courses, which are ungraded, the attainment and attainment rate is based on entries which have resulted in a pass.
English
There were 46,626 entries at National 5 in 2020, (45,593 in 2019) with an A-C attainment rate of 87.6% (86.3% in 2019). At Higher level there were 36,205 entries (35,461 in 2019), with an A-C attainment rate of 76.6% (73.2% in 2019).
Mathematics
There were 41,141 entries at National 5 (41,586 in 2019), with an A-C attainment rate of 66.7%, (65.5% in 2019). At Higher level there were 19,160 entries (18,626 in 2019), with an A-C attainment rate of 72.3% (72.4% in 2019).
Applications of Mathematics
There were 10,430 entries at National 5, (4,458 in 2019) with an A-C attainment rate of 67.3% (58.5% in 2019).
Comparison of 2020 estimates versus prior attainment levels
The charts below provide A to C attainment rates for National 5, Higher and Advanced Higher from 2016-2019, attainment rate estimates for 2020 and attainment results for 2020.
The A to C attainment rates in 2020 are:
At National 5, 243,572 or 81.1% (225,594 or 78.2% in 2019)
At Higher is 146,643 or 78.9% (138,972 or 74.8% in 2019), and
Advanced Higher is 20,010 or 84.9% (18,627 or 79.4% in 2019).
National 5
National 5 attainment % comparison20162017201820192020 Estimates2020 Results020406080100Attainment %JS chart by amCharts
Higher
Higher attainment % comparison20162017201820192020 Estimates2020 Results020406080100Attainment %JS chart by amCharts
National Progression Awards (NPAs), National Certificates (NCs) and SQA Awards
National Progression Awards (NPAs) and National Certificates (NCs)
Attainment figures for National Progression Awards (NPAs) and National Certificates (NCs) are also included. In total, 16,230 NPAs and 4,284 NCs have been achieved (13,136 NPAs and 4,873 NCs in 2019). NPAs are designed to assess a defined set of skills and knowledge in specialist vocational areas, such as Construction and Childcare.
National Certificates are designed to prepare people for employment, career development or progression to more advanced study in areas such as Sound Production and Fabrication and Welding Engineering.
SQA Awards
Attainment figures for SQA Awards are included in the statistics. In total, 31,428 have been achieved in 2020 (26,735 in 2019).
SQA Awards are designed to develop and provide evidence of specific skills that will help learners in the world of work and everyday life. Awards include Modern Languages for Life and Work, Employability, Scottish Studies and Enterprise.
Attainment
2020
2019
2018
2017
2016
SCQF level 1
Awards
399
439
386
290
283
SCQF level 2
Awards
912
1,004
664
1,167
750
National Progression Awards
91
69
121
88
77
SCQF level 3
Awards
4,253
4,428
3,937
4,303
3,863
National Certificates
5
7
0
1
18
National Progression Awards
207
100
142
177
135
SCQF level 4
Awards
11,736
10,292
9,851
10,834
11,391
National Certificates
166
223
213
345
371
National Progression Awards
4,321
4,371
4,759
4,803
4,958
SCQF level 5
Awards
8,232
5,184
3,755
3,662
2,907
National Certificates
1,465
1,809
2,450
2,691
4,103
National Progression Awards
5,915
5,252
4,604
4,395
4,958
SCQF level 6
Awards
5,896
5,388
4,258
3,523
2,710
National Certificates
2,648
2,834
3,538
3,585
4,920
National Progression Awards
5,696
3,344
2,848
1,619
1,611
TOTAL
51,942
44,744
41,526
41,483
43,055
Skills for Work
Skills for Work courses – available across SCQF levels 3-6, are also included in the attainment statistics. In total, 12,279 Skills for Work courses have been achieved, (9,662 in 2019).
Skills for Work courses focus on the world of work and the generic employability skills needed for success in the workplace. The courses offer opportunities for learners to acquire these critical generic employability skills through a variety of practical experiences that are linked to a particular vocational area such as construction, hairdressing, and hospitality.
Young people taking one of these Skills for Work courses will normally spend some of their time at a local college, other training provider or employer.
The SQA’s full awarding methodology, Equality Impact Assessment and Child Rights and Wellbeing Impact Assessment reports have also been published in full as planned.
With exams cancelled because of coronavirus, the Scottish Qualifications Authority (SQA) downgraded many of the assessments made by teachers, bringing accusations of disproportionately affecting the results of pupils from schools in areas of deprivation which traditionally present fewer successful pupils for exams.
Education Secretary John Swinney,who now faces a vote of no confidence at Holyrood, has said he understands the concerns of pupils and he will address these concerns when he makes a statement to parliament on Tuesday.
