Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to ensure that low-paid workers in net pay workplace pension schemes can receive the same level of tax relief as they would if their employer used a relief at source scheme; and, if so, when they intend to implement them.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Non-taxpayers who save in relief at source pension arrangements are better off than those using net pay schemes. Legislation introduced in 2023 requires HMRC to make a top-up payment to affected individuals.
The government remains committed to this policy which will see approximately one million individuals in net pay schemes offered an annual payment of around £70. This means that individuals should receive similar outcomes regardless of whether they are members of a relief at source or a net pay pension scheme.
HMRC are developing the IT solution to identify eligible individuals and make these payments. Top-up payments will be made for tax-year 2024-25 and subsequent years. The first payment for 2024-25 will be offered to eligible individuals in 2026.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of whether the Financial Conduct Authority and other regulators have sufficient powers to intervene when retail investment platforms fail to inform their customers clearly, fully and in a timely manner (1) about the direct charges they pay for the investments they purchase on the platforms, (2) that they can exercise their rights to vote at the meetings of companies in which they hold shares, and (3) about the reasons for de-platforming listed, regulated investments that they may wish to purchase.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government wants to see more consumers benefit from the long-term financial security and returns that investing can provide and recognises that platforms will be crucial to achieving this objective.
Retail investment platforms are regulated by the Financial Conduct Authority (FCA), which has the necessary powers to intervene should they find retail investment platforms to be in breach of their regulatory obligations.
The Government legislated to enable the FCA to reform the UK’s retail disclosure regime to ensure consumers have access to the most useful information – including on risks, costs and performance – to support their investment decisions. The FCA consultation is currently open for views.
The issue of shareholder rights, including where shares are held by an intermediary, is being considered by the Digitisation Taskforce. The government is fully committed to ensuring the UK’s shareholding framework is fit for purpose and looks forward to receiving the taskforce’s final report.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to ensure that low earners in Net Pay pension schemes do not suffer lower take home pay as a result of their employer’s scheme choice.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Legislation introduced in 2023 requires HMRC to make a top-up payment to those individuals contributing to a pension scheme using a net pay arrangement, whose total taxable income is below their personal allowance.
This means that low earning pension savers should receive similar outcomes regardless of whether they are members of a relief at source pension scheme or a net pay pension scheme.
HMRC are developing the IT solution to make these payments, in line with legislation, as soon as practicable in the tax year after the pension contributions were made. The first payments will be made in tax-year 2025-26 in respect of contributions made during 2024-25.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what analysis they have carried out of the impact of inaccurate reporting required by the Financial Conduct Authority of listed investment company management expenses and the impact this has had on investors, renewable energy projects, infrastructure, real estate and UK financial markets.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The investment company sector plays a key role in the UK’s economy, representing over 30% of the FTSE 250, and investing in illiquid assets – including infrastructure projects and renewables – to support the Government’s growth agenda.
The Government will carefully consider all options regarding cost disclosure to retail investors.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what proportion of people aged 55 to 66 have a National Insurance record of more than 35 years.
Answered by Baroness Penn
Information in the form requested is not readily available and could only be obtained/compiled/collated at disproportionate cost.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what proportion of people aged 55 to 66 have a National Insurance record of more than 40 years.
Answered by Baroness Penn
Information in the form requested is not readily available and could only be obtained/compiled/collated at disproportionate cost.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how much (1) gross tax relief, and (2) National Insurance relief, was given to (a) Defined Benefit or hybrid pension scheme employers, (b) Defined Benefit or hybrid pension scheme members, (c) Defined Contribution workplace scheme employers, (d) Defined Contribution pension scheme auto-enrolment members, and (e) other Defined Contribution pension scheme members, in each of the past three years.
Answered by Baroness Penn
Estimates of the cost of Income Tax and National Insurance Contribution relief on total pension contributions made in 2020 to 2021 can be found in Tables 1 and 2 below. Figures are provided in millions and rounded to the nearest hundred million pounds. Hybrid defined contribution and defined benefit schemes are counted as defined benefit schemes for the purpose of this analysis.
HMRC do not publish estimates of total pension contributions.
Table 1: Income Tax relief on pension contributions in 2020 to 2021 by type of contribution, £million | ||
Income Tax relief in 2020 to 2021 [provisional] on: | Defined benefit scheme | Defined contribution scheme |
Individual contributions to net pay arrangements | 3,600 | 900 |
Individual contributions to relief at source schemes | 0 | 4,900 |
Salary sacrificed contributions | 1,100 | 3,600 |
Employer contributions to net pay arrangements | 16,800* | 4,100 |
Employer contributions to relief at source schemes | 0 | 5,900* |
Table 2: National Insurance Contribution (NIC) relief on pension contributions in 2020 to 2021 by type of contribution, £million | ||
NIC relief in 2020 to 2021 [provisional] on: | Defined benefit scheme | Defined contribution scheme |
Class 1 Primary (employee) NIC relief on employer contributions to net pay arrangements | 4,900* | 1,000 |
Class 1 Primary (employee) NIC relief on employer contributions to relief at source schemes | 0 | 1,500* |
Class 1 Primary (employee) NIC relief on salary sacrificed contributions | 300 | 800 |
Class 1 Secondary (employer) NIC relief on employer contributions to net pay arrangements | 8,200* | 1,800 |
Class 1 Secondary (employer) NIC relief on employer contributions to relief at source schemes | 0 | 2,700* |
Class 1 Secondary (employer) NIC relief on salary sacrificed contributions | 500 | 1,500 |
*These figures contain forecasts rather than being entirely based on outturn data sources.
Please note that the figures provided are estimates only.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what were the total pension contributions to (1) Defined Benefit or hybrid schemes, (2) Defined Contribution auto-enrolment workplace schemes, and (3) other pension schemes, in each of the past three years.
Answered by Baroness Penn
Estimates of the cost of Income Tax and National Insurance Contribution relief on total pension contributions made in 2020 to 2021 can be found in Tables 1 and 2 below. Figures are provided in millions and rounded to the nearest hundred million pounds. Hybrid defined contribution and defined benefit schemes are counted as defined benefit schemes for the purpose of this analysis.
HMRC do not publish estimates of total pension contributions.
Table 1: Income Tax relief on pension contributions in 2020 to 2021 by type of contribution, £million | ||
Income Tax relief in 2020 to 2021 [provisional] on: | Defined benefit scheme | Defined contribution scheme |
Individual contributions to net pay arrangements | 3,600 | 900 |
Individual contributions to relief at source schemes | 0 | 4,900 |
Salary sacrificed contributions | 1,100 | 3,600 |
Employer contributions to net pay arrangements | 16,800* | 4,100 |
Employer contributions to relief at source schemes | 0 | 5,900* |
Table 2: National Insurance Contribution (NIC) relief on pension contributions in 2020 to 2021 by type of contribution, £million | ||
NIC relief in 2020 to 2021 [provisional] on: | Defined benefit scheme | Defined contribution scheme |
Class 1 Primary (employee) NIC relief on employer contributions to net pay arrangements | 4,900* | 1,000 |
Class 1 Primary (employee) NIC relief on employer contributions to relief at source schemes | 0 | 1,500* |
Class 1 Primary (employee) NIC relief on salary sacrificed contributions | 300 | 800 |
Class 1 Secondary (employer) NIC relief on employer contributions to net pay arrangements | 8,200* | 1,800 |
Class 1 Secondary (employer) NIC relief on employer contributions to relief at source schemes | 0 | 2,700* |
Class 1 Secondary (employer) NIC relief on salary sacrificed contributions | 500 | 1,500 |
*These figures contain forecasts rather than being entirely based on outturn data sources.
Please note that the figures provided are estimates only.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the successes of duty free on arrival stores in the 65 other countries that have legislated for these; and whether they intend to assess the potential merits of implementing arrivals duty free in the UK.
Answered by Baroness Penn
Duty-free on arrival would place additional pressure on the public finances to which excise duty makes a significant contribution. Tax generated by the Government helps fund key spending priorities such as important public services, including the NHS, education, and defence.
Although there are no plans to introduce a duty-free on arrival scheme, the Government keeps all taxes under review and welcomes representations to help inform future decisions on tax policy, as part of the tax policy making cycle and Budget process.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the cost to the UK economy of removing duty-free shopping for passengers arriving in the UK, and for overseas shoppers across the country.
Answered by Baroness Penn
Duty-free on arrival would place additional pressure on the public finances to which excise duty makes a significant contribution. Tax generated by the Government helps fund key spending priorities such as important public services, including the NHS, education, and defence.
Although there are no plans to introduce a duty-free on arrival scheme, the Government keeps all taxes under review and welcomes representations to help inform future decisions on tax policy, as part of the tax policy making cycle and Budget process.