National Insurance Contributions (Employer Pensions Contributions) Bill 2024-26

Clause 1, page 2, line 14, at end insert- "(6DA) In cases where the contribution limit is exceeded, regulations must make provisions for such amounts not be treated as earnings by virtue of the Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470), Part 4, Regulation 41.”

Clause 1, page 2, line 16, at end insert- "(6F) Before making regulations under this section, the Secretary of State must lay before Parliament a statement confirming that the requirements in section 1(3) of the National Insurance Contributions (Employer Pensions Contributions) Act 2026 have been complied with."

Clause 1, page 2, line 19, leave out from “4(6A)” to end of line 21

Clause 1, page 2, line 21, at end insert- "(b) after subsection (1), insert - “(1A) Subsection (1) does not apply to regulations under section 4(6A) which make provision only for increasing the amount of the contributions limit for a tax year.”””

Clause 1, page 2, line 23, at end insert “, provided that the following disclosures relating to the calculations and estimates for the financial years 2029–30 and 2030–31 and contained in the Budget Red Book 2025 have been laid before Parliament- (a) the estimated number of basic rate taxpayers making use of salary sacrifice arrangements exceeding £2,000 per annum; (b) the estimated number of higher rate and additional rate taxpayers making use of salary sacrifice arrangements exceeding £2,000 per annum; (c) the estimated number of employers expected to reduce their contributions, as calculated in the Office for Budget Responsibility supplementary analysis published in February 2026, broken down by (i) basic rate taxpayers, and (ii) higher rate and additional rate taxpayers; (d) the proportion of the revenue to the Exchequer attributed in the Budget Red Book 2025 to- (i) increases in employer National Insurance contributions, and (ii) increases in employee National Insurance contributions.”

Clause 1, page 2, line 26, leave out “£2,000” and insert “£5,000”

Clause 1, page 2, line 27, at end insert— "(5) The amendments made by this section do not apply where the employer - (a) is a small or medium-sized enterprise, or (b) is a charity or social enterprise which meets the conditions in subsection (6). (6) The conditions are that - (a) the employer meets the definition of a small or medium-sized enterprise in section 465 of the Companies Act 2006 (companies qualifying as medium-sized: general), and (b) the employment is carried out wholly or mainly for the purposes of that charity or social enterprise. (7) In this section – "charity" has the meaning given by section 1 of the Charities Act 2011; “social enterprise” means an undertaking which- (a) has as its primary purpose the achievement of social or environmental objectives, and (b) principally reinvests its profits for those purposes; “small or medium-sized enterprise” has the meaning given by section 465 of the Companies Act 2006."

Clause 2, page 3, line 26, at end insert- "(6DA) In cases where the contribution limit is exceeded, regulations must make provisions for such amounts not be treated as earnings by virtue of the Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470), Part 4, Regulation 41."

Clause 2, page 3, line 31, leave out from “4(6A) to “shall” in line 32

Clause 2, page 3, line 34, at end insert- “(11ZZB) Subsection (11ZZA) does not apply to regulations under section 4(6A) which make provision only for increasing the amount of the contributions limit for a tax year."

Clause 2, page 3, line 39, leave out “£2,000” and insert “£5,000”

Clause 2

Clause 1, page 1, line 10, after “tax” insert “at the higher or additional rate"

After Clause 2, insert the following new Clause- "Review of impact on small and medium-sized enterprises (1) The Secretary of State must, within 12 months of the passing of this Act, lay before Parliament an independent report assessing the impact of the provisions of this Act relating to employer National Insurance contributions on small and medium-sized enterprises, including social enterprises in Great Britain and Northern Ireland. (2) The report under subsection (1) must, in particular, assess the impact on – (a) administrative and compliance costs arising from changes to payroll, pension and benefits administration, (b) the complexity of operating salary sacrifice and workplace pension arrangements, (c) the operability of these changes for those in receipt of irregular remuneration, those with seasonal working patterns or those with multiple employments (d) employment costs, and (e) the ability of small and medium-sized enterprises to attract, retain and reward staff."

After Clause 2, insert the following new Clause- "Review of impact on charities and social enterprises (1) The Chancellor of the Exchequer must, within 12 months of the coming into force of regulations made under this Act, lay before Parliament an independent report reviewing the impact of the provisions of this Act on charities and social enterprises. (2) The report under subsection (1) must in particular consider - (a) the administrative and compliance costs arising from the operation of the contributions limit, (b) the impact on payroll, pension and administration, (c) the effect on employment costs and workforce planning, (d) the impact on the ability of charities and social enterprises to attract, retain and reward staff, and (e) whether the provisions of this Act have had any effect on levels of pension saving among employees of charities and social enterprises."

Clause 3, page 4, line 5, leave out subsection (2) and insert— "(2) This section comes into force on the day on which this Act is passed. (2A) The other provisions of this Act may only come into force when a review, meeting the requirements set out in subsections (2B) to (2D), has been completed. (2B) The Secretary of State must commission a review of the impact of this Act. (2C) The review must consider the impact of - (a) Optional Remuneration Arrangements (OpRa) rules on pensions adequacy and salaries, and (b) the supplementary forecast information release made by the Office for Budget Responsibility on 5 February 2026, titled Costing of charging NICs on salary-sacrificed pension contributions, on the behavioural responses to the provisions in this Act, that underlie the Government's published policy costings. (2D) The Secretary of State must publish the report of the review and lay it before Parliament."

Clause 3, page 4, line 5, at end insert “, provided that HM Treasury has by that date published guidance and laid relevant regulations setting out the basis on which HM Treasury considers how the contributions limit specified under sections 1(1) and 2( 2(1) will apply to workers to change jobs during a tax year, including specification of who is responsible for tracking the amount of salary sacrificed contributions have accrued during the tax year in which the job change occurs and who is responsible for reporting the salary sacrifice contributions to the new employer and to HMRC.”

Clause 1, page 2, line 14, at end insert- "(6DA) Regulations made under subsection (6A) must make provision enabling an employed earner to carry forward any unused part of the contributions limit from the three immediately preceding tax years for the purposes of determining the contributions limit applicable in a subsequent tax year. (6DB) For the purposes of subsection (6DA) – (a) an amount is “unused” to the extent that the amount foregone in relation to benefits mentioned in subsection (6A) for a tax year is less than the contributions limit for that year, (b) regulations may make provision about the order in which unused amounts are to be treated as used, (c) regulations may make provision about cases in which an employed earner was not within subsection (6A) for the whole or part of a tax year, and (d) regulations may make such consequential, supplementary, incidental or transitional provision as HM Treasury considers appropriate."

Clause 1, page 2, line 14, at end insert- "(6DA) Regulations made under subsection (6A) may make provision enabling an employed earner to carry forward any unused part of the contributions limit from one or more previous tax years, for the purposes of determining the contributions limit applicable in a subsequent tax year. (6DB) Regulations made in accordance with subsection (6DA) may in particular – (a) specify the number of previous tax years from which unused amounts may be carried forward, (b) make provision for how any unused amount is to be calculated, (c) make provision about the treatment of earners whose remuneration fluctuates between tax years, and (d) make such consequential, supplementary, incidental or transitional provision as HM Treasury considers appropriate."

Clause 1, page 2, line 14, at end insert- "(6DA) Contributions to pensions where employees are not offered alternative compensation are not to be treated as optional remuneration arrangements.”

Clause 1, page 2, line 14, at end insert — "(6DA) In cases where the contribution limit is exceeded, regulations must make provisions for such amounts not be treated as earnings by virtue of the Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470), Part 4, Regulation 41."

Clause 1, page 2, line 14, at end insert — "(6DA) Regulations made under subsection (6A) must include provision explaining- (a) the basis on which the Treasury considers employed earners to be higher earners for the purposes of those regulations, and (b) how the contributions limit specified under subsection (6C) reflects that assessment."

Clause 1, page 2, line 16, at end insert — “(6F) For the avoidance of doubt, the contributions limit specified by regulations made under subsection (6A) applies in relation to each employment any individual employee has."

Clause 1, page 2, line 26, leave out from “as” to end of line 27 and insert “the amount calculated under subsections (5) and (6). (5) In 2029-30 the contributions limit must be set at a figure equal to £2,000 uprated by any percentage change in the consumer price index between 2026-27 and 2028-29. (6) In subsequent tax years the contributions limit must be uprated by the same percentage change as that applied to the consumer price index that year."

Clause 2, page 3, line 26, at end insert — "(6DA) Regulations made under subsection (6A) may make provision enabling an employed earner to carry forward any unused part of the contributions limit from one or more previous tax years, for the purposes of determining the contributions limit applicable in a subsequent tax year. (6DB) Regulations made in accordance with subsection (6DA) may in particular - (a) specify the number of previous tax years from which unused amounts may be carried forward, (b) make provision for how any unused amount is to be calculated, (c) make provision about the treatment of earners whose remuneration fluctuates between tax years, and (d) make such consequential, supplementary, incidental or transitional provision as HM Treasury considers appropriate."

Clause 2, page 3, line 26, at end insert- "(6DA) Contributions to pensions where employees are not offered alternative compensation are not to be treated as optional remuneration arrangements.”

Clause 2, page 3, line 26, at end insert- "(6DA) Regulations made under subsection (6A) must include provision explaining- (a) the basis on which the Treasury considers employed earners to be higher earners for the purposes of those regulations, and (b) how the contributions limit specified under subsection (6C) reflects that assessment."

Clause 2, page 3, line 28, at end insert- "(6F) For the avoidance of doubt, the contributions limit specified by regulations made under subsection (6A) applies in relation to each employment any individual employee has."

Clause 2, page 3, line 39, leave out from “as” to end of line 41 and insert “the amount calculated under subsections (5) and (6). (5) In 2029-30 the contributions limit must be set at a figure equal to £2,000 uprated by any percentage change in the consumer price index between 2026-27 and 2028-29. (6) In subsequent tax years the contributions limit must be uprated by the same percentage change as that applied to the consumer price index that year."

Clause 3, page 4, line 5, at end insert “, provided that HM Treasury has by that day published guidance setting out the basis on which HM Treasury considers how the contributions limit specified under subsections 1(1) and 2(1) is to apply to employed earners with multiple unconnected concurrent employments.”

Clause 3, page 4, line 5, at end insert - "(2A) Regulations made under section 4(6A) of the Social Security Contributions and Benefits Act 1992 or section 4(6A) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 may not come into force until the expiry of the period of six months beginning with the day on which they are laid before Parliament.”

4A

Clause 1, page 2, line 14, at end insert — "(6DA) Regulations made under subsection (6A) may make provision enabling an employed earner to carry forward any unused part of the contributions limit from one or more previous tax years, for the purposes of determining the contributions limit applicable in a subsequent tax year. (6DB) Regulations made in accordance with subsection (6DA) may in particular – (a) specify the number of previous tax years from which unused amounts may be carried forward, (b) make provision for how any unused amount is to be calculated, (c) make provision about the treatment of earners whose remuneration fluctuates between tax years, and (d) make such consequential, supplementary, incidental or transitional provision as HM Treasury considers appropriate."

4B

Clause 1, page 2, line 14, at end insert — "(6DA) Regulations made under subsection (6A) must make provision enabling an employed earner to carry forward any unused part of the contributions limit from the three immediately preceding tax years for the purposes of determining the contributions limit applicable in a subsequent tax year. (6DB) For the purposes of subsection (6DA) – (a) an amount is “unused” to the extent that the amount foregone in relation to benefits mentioned in subsection (6A) for a tax year is less than the contributions limit for that year, (b) regulations may make provision about the order in which unused amounts are to be treated as used, (c) regulations may make provision about cases in which an employed earner was not within subsection (6A) for the whole or part of a tax year, and (d) regulations may make such consequential, supplementary, incidental or transitional provision as HM Treasury considers appropriate."

17A

Clause 2, page 3, line 26, at end insert- "(6DA) Regulations made under subsection (6A) may make provision enabling an employed earner to carry forward any unused part of the contributions limit from one or more previous tax years, for the purposes of determining the contributions limit applicable in a subsequent tax year. (6DB) Regulations made in accordance with subsection (6DA) may in particular – (a) specify the number of previous tax years from which unused amounts may be carried forward, (b) make provision for how any unused amount is to be calculated, (c) make provision about the treatment of earners whose remuneration fluctuates between tax years, and (d) make such consequential, supplementary, incidental or transitional provision as HM Treasury considers appropriate."

17B

Clause 2, page 3, line 26, at end insert- "(6DA) Regulations made under subsection (6A) must make provision enabling an employed earner to carry forward any unused part of the contributions limit from the three immediately preceding tax years for the purposes of determining the contributions limit applicable in a subsequent tax year. (6DB) For the purposes of subsection (6DA) – (a) an amount is “unused” to the extent that the amount foregone in relation to benefits mentioned in subsection (6A) for a tax year is less than the contributions limit for that year, (b) regulations may make provision about the order in which unused amounts are to be treated as used, (c) regulations may make provision about cases in which an employed earner was not within subsection (6A) for the whole or part of a tax year, and (d) regulations may make such consequential, supplementary, incidental or transitional provision as HM Treasury considers appropriate.”

29A

After Clause 2, insert the following new Clause- "Independent report on the impact of the employer pensions contributions limit (1) The Chancellor of the Exchequer must, within 18 months of the coming into force of regulations made under this Act, lay before Parliament an independent report reviewing the impact of the contributions limit imposed by this Act on- (a) employed earners whose remuneration fluctuates between tax years, (b) employed earners whose remuneration arrangements are inconsistent or variable whilst in employment, and (c) employers required to operate the system. (2) The report under subsection (1) must in particular consider – (a) the effect of the contributions limit on earners with bonus-based, commission-based or otherwise irregular income, (b) the administrative and compliance costs incurred by employers, payroll providers and software operators in implementing and operating the system provided for by this Act, (c) the impact of the changes made by this Act on payroll processes and reporting obligations, (d) whether employers are provided with sufficient information and guidance to operate the system provided for by this Act effectively and accurately, and (e) whether further steps are required to ensure the efficient operation of the system provided for by this Act for both employers and His Majesty's Revenue and Customs. (3) In preparing the report, the Chancellor of the Exchequer must consult- (a) representatives of employers, (b) payroll and software providers, and (c) such other persons as the Chancellor considers appropriate. (4) The report must include an assessment of whether further legislative or regulatory changes are necessary as a consequence of the changes made by this Act.”

2

Clause 1, page 2, line 14, at end insert- "(6DA) Regulations made under subsection (6A) must include provision explaining- (a) the basis on which the Treasury considers employed earners to be higher earners for the purposes of those regulations; and (b) how the contributions limit specified under subsection (6C) reflects that assessment."

3

Clause 1, page 2, line 14, at end insert- "(6DA) In cases where the contribution limit is exceeded, regulations must make provisions for such amounts not be treated as earnings by virtue of the Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470), Part 4, Regulation 41."

4

Clause 1, page 2, line 14, at end insert — "(6DA) Contributions to pensions where employees are not offered alternative compensation are not to be treated as optional remuneration arrangements.”

15

Clause 2, page 3, line 26, at end insert — "(6DA) Regulations made under subsection (6A) must include provision explaining- (a) the basis on which the Treasury considers employed earners to be higher earners for the purposes of those regulations; and (b) how the contributions limit specified under subsection (6C) reflects that assessment."

16

Clause 2, page 3, line 26, at end insert- "(6DA) In cases where the contribution limit is exceeded, regulations must make provisions for such amounts not be treated as earnings by virtue of the Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470), Part 4, Regulation 41."

17

Clause 2, page 3, line 26, at end insert — "(6DA) Contributions to pensions where employees are not offered alternative compensation are not to be treated as optional remuneration arrangements.”

33

Clause 3, page 4, line 5, at end insert “, provided that the Treasury has by that day published guidance setting out the basis on which the Treasury considers how the contributions limit specified under subsections 1(1) and 2(1) is to apply to employed earners with multiple unconnected concurrent employments.”

After Clause 2, insert the following new Clause- "Independent report: impact The Secretary of State must, within 12 months of the day on which this Act is passed, lay before Parliament an independent report assessing the impact of the provisions of this Act on (a) contribution levels for workplace pensions; (b) opt-out rates from auto-enrolment; (c) additional costs of pension administration for employers; (d) take-home pay for workers; (e) future pay increases and employment levels for companies using salary sacrifice for pension contributions; (f) use of salary sacrifice for employer pension contributions.”

Clause 1, page 2, line 26, leave out “£2,000” and insert “the amount calculated as 5% of the National Insurance Upper Earning Limits Annual Threshold"

Clause 1, page 2, line 26, leave out “£2,000” and insert “£10,000”

Clause 2, page 3, line 39, leave out “£2,000” and insert “the amount calculated as 5% of the National Insurance Upper Earning Limits Annual Threshold"

Clause 1, page 1, line 10, after “tax” insert “at the higher or additional rate"

Clause 1, page 2, line 21, at end insert “, or which make provision altering the method through which the contributions limit, or any equivalent of that limit, is calculated or applied"

Clause 1, page 2, line 27, at end insert- "(5) The amendments made by this section do not apply where the employer – (a) is a small or medium-sized enterprise, or (b) is a charity or social enterprise which meets the conditions in subsection (6). (6) The conditions are that- (a) the employer meets the definition of a small or medium-sized enterprise in section 465 of the Companies Act 2006, and (b) the employment is carried out wholly or mainly for the purposes of that charity or social enterprise. (7) In this section – "charity" has the meaning given by section 1 of the Charities Act 2011; “social enterprise” means an undertaking which- (a) has as its primary purpose the achievement of social or environmental objectives, and (b) principally reinvests its profits for those purposes; “small or medium-sized enterprise” has the meaning given by section 465 of the Companies Act 2006."

Clause 2, page 2, line 38, after “tax” insert “at the higher or additional rate"

Clause 2, page 3, line 32, after “year” insert “, or which make provision altering the method through which the contributions limit, or any equivalent of that limit, is calculated or applied,"

Clause 2, page 3, line 41, at end insert- "(5) The amendments made by this section do not apply where the employer – (a) is a small or medium-sized enterprise, or (b) is a charity or social enterprise which meets the conditions in subsection (6). (6) The conditions are that- (a) the employer meets the definition of a small or medium-sized enterprise in section 465 of the Companies Act 2006; and (b) the employment is carried out wholly or mainly for the purposes of that charity or social enterprise. (7) In this section – "charity" has the meaning given by section 1 of the Charities Act 2011; “social enterprise” means an undertaking which- (a) has as its primary purpose the achievement of social or environmental objectives, and (b) principally reinvests its profits for those purposes; “small or medium-sized enterprise” has the meaning given by section 465 of the Companies Act 2006."

After Clause 2, insert the following new Clause- "Review of impact on small and medium-sized enterprises (1) The Secretary of State must, within 12 months of the passing of this Act, lay before Parliament an independent report assessing the impact of the provisions of this Act relating to employer National Insurance contributions on small and medium-sized enterprises, including social enterprises. (2) The report under subsection (1) must, in particular, assess the impact on – (a) administrative and compliance costs arising from changes to payroll, pension and benefits administration, (b) the complexity of operating salary sacrifice and workplace pension arrangements, (c) employment costs, and (d) the ability of small and medium-sized enterprises to attract, retain and reward staff. (3) The report under subsection (1) must assess the impact of this Act in the context of the cumulative impact of changes to employer National Insurance contributions affecting small and medium-sized enterprises since July 2024.”

Clause 3, page 4, line 5, leave out subsection (2) and insert— “(2) The provisions of this Act, other than this section, may only come into force when a review, meeting the requirements set out in subsections (2A) to (2D), has been completed. (2A) The Secretary of State must commission an independent review of the impact of this Act. (2B) The review must consider - (a) the effect of this Act on pensions adequacy among employees affected by its provisions, (b) the impact of this Act on those affected by its provisions who are also repaying student loans, and (c) the impact of this Act on levels of pension saving and participation in pension schemes. (2C) The person appointed to carry out the review must be independent of His Majesty's Government. (2D) The Secretary of State must publish the report of the review and lay it before both Houses of Parliament."

Clause 3, page 4, line 5, leave out subsection (2) and insert- "(2) The provisions of this Act, other than this section, may not come into force unless and until the conditions in subsections (2A) to (2C) are met. (2A) The Secretary of State must undertake an independent review of the impact of this Act on employers. (2B) The report must in particular consider – (a) the direct and indirect costs incurred by employers as a result of this Act, (b) the effect of the Act on employer pension contributions and the use of salary sacrifice arrangements, (c) the additional compliance costs necessitated by this Act, and (d) any consequential impacts on employment practices, workforce retention or remuneration structures. (2C) The Secretary of State must publish the report of the review and lay it before both Houses of Parliament."

Clause 3, page 4, line 5, leave out subsection (2) and insert— “(2) The provisions of this Act, other than this section, may only come into force when a review, meeting the requirements set out in subsections (2A) to (2C), has been completed. (2A) The Secretary of State must commission a review of the impact of this Act. (2B) The review must consider the impact of - (a) Optional Remuneration Arrangements (OpRa) rules on pensions adequacy and salaries, and (b) the supplementary forecast information release made by the Office for Budget Responsibility on 5 February 2026, titled Costing of charging NICs on salary-sacrificed pension contributions, on the behavioural responses to the provisions in this Act, that underlie the Government's published policy costings. (2C) The Secretary of State must publish the report of the review and lay it before Parliament."

Clause 1, page 1, line 10, after “tax” insert “at the higher or additional rate”

Clause 1, page 2, line 16, at end insert- "(6F) Regulations made under subsection (6A) must include provision explaining- (a) the basis on which the Treasury considers employed earners to be higher earners for the purposes of those regulations; and (b) how the contributions limit specified under subsection (6C) reflects that assessment."

Clause 1, page 2, line 21, at end insert “, or which make provision altering the method through which the contributions limit, or any equivalent of that limit, is calculated or applied"

Clause 1, page 2, line 26, leave out “£2,000” and insert “the amount calculated under subsections (5) and (6)"

Clause 1, page 2, line 26, leave out “£2,000” and insert “£5,000”

Clause 1, page 2, line 26, leave out from “as” to end of line 27 and insert “the amount calculated under subsections (5) and (6). (5) For the tax year 2029–30 the contributions limit must be £2,000 uprated by the percentage change in the retail prices index between 2026–27 and 2028–29. (6) In subsequent tax years the contributions limit must be uprated annually in line with the retail prices index."

Clause 1, page 2, line 26, leave out from “as” to end of line 27 and insert “the amount calculated under subsections (5) and (6). (5) For the tax year 2029-30 the contributions limit must be £5,000 uprated by the percentage change in the retail prices index between 2026–27 and 2028–29. (6) In subsequent tax years the contributions limit must be uprated annually in line with the retail prices index."

Clause 1, page 2, line 27, at end insert- "(5) The amendments made by this section do not apply where the employer - (a) is a small or medium-sized enterprise, or (b) is a charity or social enterprise which meets the conditions in subsection (6). (6) The conditions are that— (a) the employer meets the definition of a small or medium-sized enterprise in section 465 of the Companies Act 2006, and (b) the employment is carried out wholly or mainly for the purposes of that charity or social enterprise. (7) In this section – "charity” has the meaning given by section 1 of the Charities Act 2011; “social enterprise” means an undertaking which – (a) has as its primary purpose the achievement of social or environmental objectives, and (b) principally reinvests its profits for those purposes; “small or medium-sized enterprise” has the meaning given by section 465 of the Companies Act 2006."

Clause 1, page 2, line 27, at end insert- “(5) In 2029-30 the contributions limit must be set at a figure equal to £2,000 uprated by any percentage change in the consumer price index between 2026-27 and 2028-29. (6) In subsequent tax years the contributions limit must be uprated by the same percentage change as that applied to the consumer price index that year.”

Clause 2, page 2, line 38, after “tax” insert “at the higher or additional rate”

Clause 2, page 3, line 28, at end insert- "(6F) Regulations made under subsection (6A) must include provision explaining- (a) the basis on which the Treasury considers employed earners to be higher earners for the purposes of those regulations; and (b) how the contributions limit specified under subsection (6C) reflects that assessment."

Clause 2, page 3, line 32, after “year” insert “, or which make provision altering the method through which the contributions limit, or any equivalent of that limit, is calculated or applied,”

Clause 2, page 3, line 39, leave out “£2,000” and insert “the amount calculated under subsections (5) and (6)"

Clause 2, page 3, line 39, leave out “£2,000” and insert “£5,000”

Clause 2, page 3, line 39, leave out from “as” to end of line 41 and insert “the amount calculated under subsections (5) and (6). (5) For the tax year 2029–30 the contributions limit must be £2,000 uprated by the percentage change in the retail prices index between 2026–27 and 2028–29. (6) In subsequent tax years the contributions limit must be uprated annually in line with the retail prices index."

Clause 2, page 3, line 39, leave out from “as” to end of line 41 and insert “the amount calculated under subsections (5) and (6). (5) For the tax year 2029–30 the contributions limit must be £5,000 uprated by the percentage change in the retail prices index between 2026–27 and 2028–29. (6) In subsequent tax years the contributions limit must be uprated annually in line with the retail prices index."

Clause 2, page 3, line 41, at end insert- "(5) The amendments made by this section do not apply where the employer - (a) is a small or medium-sized enterprise, or (b) is a charity or social enterprise which meets the conditions in subsection (6). (6) The conditions are that – (a) the employer meets the definition of a small or medium-sized enterprise in section 465 of the Companies Act 2006; and (b) the employment is carried out wholly or mainly for the purposes of that charity or social enterprise. (7) In this section – "charity” has the meaning given by section 1 of the Charities Act 2011; “social enterprise” means an undertaking which – (a) has as its primary purpose the achievement of social or environmental objectives, and (b) principally reinvests its profits for those purposes; “small or medium-sized enterprise” has the meaning given by section 465 of the Companies Act 2006."

Clause 2, page 3, line 41, at end insert- “(5) In 2029-30 the contributions limit must be set at a figure equal to £2,000 uprated by any percentage change in the consumer price index between 2026-27 and 2028-29. (6) In subsequent tax years the contributions limit must be uprated by the same percentage change as that applied to the consumer price index that year.”

After Clause 2, insert the following new Clause- "Review of impact on small and medium-sized enterprises (1) The Secretary of State must, within 12 months of the passing of this Act, lay before Parliament an independent report assessing the impact of the provisions of this Act relating to employer National Insurance contributions on small and medium-sized enterprises, including social enterprises. (2) The report under subsection (1) must, in particular, assess the impact on – (a) administrative and compliance costs arising from changes to payroll, pension and benefits administration, (b) the complexity of operating salary sacrifice and workplace pension arrangements, (c) employment costs, and (d) the ability of small and medium-sized enterprises to attract, retain and reward staff. (3) The report under subsection (1) must assess the impact of this Act in the context of the cumulative impact of changes to employer National Insurance contributions affecting small and medium-sized enterprises since July 2024.”

After Clause 2, insert the following new Clause- "Review: impact on SME recruitment and retention (1) The Secretary of State must, within 12 months of the day on which this Act is passed, lay before Parliament a report assessing the effect of the provisions of this Act on small and medium-sized enterprises in relation to the recruitment and retention of staff. (2) The report under subsection (1) must consider the impact of this Act in the context of the cumulative impact of changes to employer national insurance contributions affecting businesses within the scope of this Act since July 2024.”

After Clause 2, insert the following new Clause- “Calculation and publication of lifetime pension values (1) The Secretary of State must calculate and publish illustrative projections of the lifetime value of pension savings before and after the changes made by this Act. (2) For the purposes of this section, “lifetime value” means the total pension income an individual is expected to receive over their lifetime. (3) Projections must- (a) be based on clearly stated assumptions, and (b) include examples covering a range of income levels and pension entitlements."

Clause 3, page 4, line 5, leave out subsection (2) and insert— “(2) The provisions of this Act, other than this section, may only come into force when a review, meeting the requirements set out in subsections (2A) to (2D), has been completed. (2A) The Secretary of State must commission an independent review of the impact of this Act. (2B) The review must consider— (a) the effect of this Act on pensions adequacy among employees affected by its provisions, (b) the impact of this Act on those affected by its provisions who are also repaying student loans, and (c) the impact of this Act on levels of pension saving and participation in pension schemes. (2C) The person appointed to carry out the review must be independent of His Majesty's Government. (2D) The Secretary of State must publish the report of the review and lay it before both Houses of Parliament."

Clause 3, page 4, line 5, leave out subsection (2) and insert— “(2) The provisions of this Act, other than this section, may not come into force unless and until the conditions in subsections (2A) to (2C) are met. (2A) The Secretary of State must undertake an independent review of the impact of this Act on employers. (2B) The report must in particular consider- (a) the direct and indirect costs incurred by employers as a result of this Act, (b) the effect of the Act on employer pension contributions and the use of salary sacrifice arrangements, (c) the additional compliance costs necessitated by this Act, and (d) any consequential impacts on employment practices, workforce retention or remuneration structures. (2C) The Secretary of State must publish the report of the review and lay it before both Houses of Parliament."

7

Clause 1, page 2, line 26, leave out from “as” to end and insert “the amount calculated under subsection (5) for a tax year (but subject to any provision made in reliance on subsection (6C)(a) or (b) of that section).
(5) In 2029-30 the contributions limit must be set at a figure equal to £2,000 uprated by any percentage change in the consumer price index between 2026-27 and 2028-29.
(6) In subsequent tax years the contributions limit must be uprated by the same percentage change as that applied to the consumer price index that year.”

This amendment would uprate the £2,000 cap by the percentage change in the consumer price index during the period before 2029-30, and would require the cap to be uprated by the same percentage as the change in the consumer price index each year thereafter.

8

Clause 2, page 3, lines 39, leave out from “as” to end and insert “the amount calculated under subsection (5) for a tax year (but subject to any provision made in reliance on subsection (6C)(a) or (b) of that section).
(5) In 2029-30 the contributions limit must be set at a figure equal to £2,000 uprated by any percentage change in the consumer price index between 2026-27 and 2028-29.
(6) In subsequent tax years the contributions limit must be uprated by the same percentage change as that applied to the consumer price index that year.”

This amendment would uprate the £2,000 cap in Northern Ireland by the percentage change in the consumer price index during the period before 2029-30, and would require the cap to be uprated by the same percentage as the change in the consumer price index each year thereafter.

5

Clause 1, page 1, line 10, after “income tax” insert “at the higher or additional rate”

This amendment would exempt basic rate taxpayers in England, Wales and Scotland from the £2,000 cap.

1

Clause 1, page 2, line 26, leave out “£2,000” and insert “the amount calculated under subsection (5)”

This amendment, with Amendment 2 would uprate the £2,000 cap by the percentage change in the national living wage during the period before 2029-30, and would require the cap to be uprated by the same percentage as the change in the national living wage each year thereafter.

2

Clause 1, page 2, line 27, at end insert—
“(5) In 2029-30 the contributions limit must be set at a figure equal to £2,000 uprated by any percentage change in the national living wage between 2026-27 and 2028-29.
(6) In subsequent tax years the contributions limit must be uprated by the same percentage change as that applied to the national living wage that year.”

This amendment, with Amendment 1 would uprate the £2,000 cap by the percentage change in the national living wage during the period before 2029-30, and would require the cap to be uprated by the same percentage as the change in the national living wage each year thereafter.

6

Clause 2, page 2, line 38, after “income tax” insert “at the higher or additional rate”

This amendment would exempt basic rate taxpayers in Northern Ireland from the £2,000 cap.

3

Clause 2, page 3, lines 39, leave out “£2000” and insert “the amount calculated under subsection (5)”

This amendment has the same effect as Amendment 1, but for Northern Ireland.

4

Clause 2, page 3, line 41, at end insert—
“(5) In 2029-30 the contributions limit must be set at figure equal to £2,000 uprated by any percentage change in the national living wage between 2026-27 and 2028-29.
(6) In subsequent tax years the contributions limit must be uprated by the same percentage change as that applied to the national living wage that year.”

This amendment has the same effect as Amendment 2, but for Northern Ireland.

NC4

To move the following Clause—
“Reviews of the impact of the Act
(1) The Treasury must, before March 2029, lay before Parliament an assessment of the impact of the changes made under this Act.
(2) The assessment made under subsection (1) must consider—
(a) the adequacy of pension contributions made by or on behalf of individuals affected by this Act,
(b) use of salary sacrifice schemes and optional remuneration arrangements, and
(c) any effects on the investment capability of UK pension funds.
(3) The Treasury must lay before Parliament a follow-up assessment of the impact of the changes made under this Act before March 2034.”

This new clause would require the Treasury to undertake an impact assessment of the effect of the change made under this Act, before they take effect, and again five years later.

NC5

To move the following Clause—
“Calculation and publication of lifetime pension values
(1) The Treasury must calculate and publish the projected lifetime value of an individual’s pension before and after the changes made by under this Act.
(2) For the purposes of subsection (1), the projected lifetime value is the total amount of pension income an individual is expected to receive over their lifetime.
(3) The calculations made under subsection (1) must—
(a) be based on clearly stated assumptions, and
(b) include illustrative examples covering different pension entitlements.”

NC6

To move the following Clause—
“Assessment of changes to pension saving through salary sacrifice schemes
(1) The Chancellor of the Exchequer must, within 15 months of the provisions of this Act coming into effect, lay before Parliament an assessment of the effect of this Act on the amount saved into pensions through salary sacrifice schemes.
(2) The assessment made under subsection (1) must include an—
(a) estimate of the total amount saved into pensions through salary sacrifice schemes in the 12 months preceding the provisions of this Act coming into effect,
(b) estimate of the total amount saved into pensions through salary sacrifice schemes in the 12 months following the provisions of this Act coming into effect, and
(c) an assessment of the difference between those amounts.”

NC1

To move the following Clause—
“Review of impact on SME recruitment and retention
(1) The Treasury must, within 12 months of the passing of this Act, lay before Parliament a report assessing the effect of its provisions on small and medium-sized businesses with regard to the—
(a) recruitment of staff, and
(b) retention of staff.
(2) The report under subsection (1) must also consider the cumulative impact of changes to employer’s national insurance on businesses affected by this Act since July 2024.”

This new clause would require the Treasury to review and report on the impact of the Bill’s provisions relating to National Insurance contributions on the ability of SMEs to recruit and retain staff.

NC2

To move the following Clause—
“Review of impact on small and medium-sized business tax liabilities
(1) The Treasury must, within 12 months of the passing of this Act, lay before Parliament a report assessing the effect of its provisions on small and medium-sized businesses with regard to—
(a) businesses’ overall tax burden,
(b) employment costs, and
(c) business solvency.
(2) The report under subsection (1) must also consider the cumulative impact of changes to employer’s national insurance on businesses affected by this Act since July 2024.”

This new clause would require the Treasury to review and report on the impact of the Bill’s provisions relating to National Insurance contributions on the overall tax burden and employment costs faced by SMEs.

NC3

To move the following Clause—
“Review of impact on employee marginal tax rates
(1) The Treasury must, within 12 months of the passing of this Act, lay before Parliament a report assessing the effect of its provisions on the number of employees brought into a higher marginal rate of income tax.
(2) The report under subsection (1) must give particular regard to the impact of the freezing of income tax thresholds between April 2022 and April 2031.”

This new clause would require the Treasury to review and report on the impact of the Bill’s provisions relating to National Insurance contributions on the number of employees who move into a higher tax band due the increase in their taxable income due to the effects of this Bill.