US EditionPublished • loading... • Updated
Millions Risk Losing Out Under New Pension Salary Sacrifice Rules Says New Research
From April 2029, salary-sacrificed pension contributions above £2,000 will incur employer and employee National Insurance contributions, affecting 3.3 million pension savers, Treasury estimates show.
- On last year’s Autumn Budget, Chancellor of the Exchequer Rachel Reeves announced salary‑sacrificed pension contributions above £2,000 will lose NI exemption from April 2029, with the Bill already passed through the Commons.
- Rising relief costs meant the cost of pension salary sacrifice was set to treble to 8 billion pounds, prompting review, as higher earners drove much of the growth, with additional rate taxpayers tripling contributions since 2017.
- HM Revenue & Customs estimates 7.7 million employees use salary sacrifice, with 3.3 million sacrificing more than £2,000 and 4.3 million protected.
- Employers may respond by slashing wages to cover higher NI costs, the Office for Budget Responsibility warned, and workers contributing less than £2,000 could lose out if pay rises are restrained.
- A survey by the ABI and Reba found 99% of businesses expect disruption, while Daniel Gallon warned the OBR’s analysis shows the impact could reach far more people than expected and Sir Steve Webb cautioned millions on modest incomes could lose out.
Insights by Ground AI
14 Articles
14 Articles
Pension tax overhaul from Rachel Reeves 'could see people on modest incomes lose out'
Analysts are sounding the alarm that Chancellor Rachel Reeves's reforms to the pension system "could see people on modest incomes lost out" once they are finally implemented.Former pensions minister Sir Steve Webb has raised alarm over Government plans to curb salary sacrifice pension arrangements, warning the impact could extend far beyond the 3.3 million savers initially identified as affected.The Liberal Democrat peer, now a partner at consul…
·London, United Kingdom
Read Full Article
Coverage Details
Total News Sources14
Leaning Left3Leaning Right2Center5Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 30%
C 50%
R 20%
Factuality
To view factuality data please Upgrade to Premium
