UK. Govt urged to conclude net pay review in Spring Budget
The government should support the retirement incomes of lower paid workers by concluding the net pay review in this year’s budget, according to Now Pensions.
Chancellor Rishi Sunak’s Spring 2020 Budget, released on 11 March last year, had stated that the government would “shortly publish a call for evidence on pensions tax relief administration” following the inclusion of plans for a comprehensive review of issues caused by the anomaly in the Conservative Party’s 2019 election manifesto.
However, this review was paused in July 2020 due to the impact of the Covid-19 pandemic.
Now Pensions director of policy, Adrian Boulding, said: “The government committed to look at this in last year’s Budget and we now need to see action to help the lowest earners get better value for money on their pensions.”
He added that Now Pensions’ research showed “the lowest income earners are missing out on up to £111m of government tax relief every year” and explained that the issue affected “workers who are auto enrolled into a net pay pension scheme because they earn more than £10,000 per year but are under the income tax threshold, currently £12,500”.
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