Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the response of the Minister for Pensions of 23 March 2026, Official Report, column 95, on the National Insurance Contributions (Employer Pension Contributions) Bill, whether her estimate of the proportion of contributions over £2,000 that are from additional rate taxpayers also includes higher rate taxpayers.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

The government is taking a pragmatic, balanced approach by introducing a cap which protects ordinary workers and limits the impact on employers, while ensuring that the system remains fiscally sustainable. 87% of pension contributions made via salary sacrifice above £2,000 are forecast to come from higher and additional rate taxpayers.

The £2,000 cap protects 74% of basic rate taxpayers using salary sacrifice. This means that three quarters of those earning up to £50,270 a year who use salary sacrifice will be unaffected.