Asked by: Lord Altrincham (Conservative - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of the National Insurance Contributions (Employer Pensions Contributions) Bill on pension saving behaviour in the private sector; and whether they expect the measures to have a disproportionate effect compared to the public sector.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The OBR set out in their Economic and Fiscal Outlook that they do not expect a material impact on savings behaviour as a result of Budget 2025 tax changes.
This change applies to all employers who use salary sacrifice for pensions, regardless of whether they are public sector or private sector. Many public sector employers are already prohibited from using salary sacrifice for pensions under government rules of "managing Public Money".
Saving into a pension, including through salary sacrifice, remains highly tax advantageous. The Government continues to provide over £70bn of income tax and NICs relief on pension contributions each year.
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice and is available online at: https://www.gov.uk/government/publications/salary-sacrifice-reform-for-pension-contributions-effective-from-6-april-2029
Asked by: Lord Altrincham (Conservative - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government whether they have conducted an impact assessment of their policy to charge VAT on independent school fees, and if so, whether they will place a copy in the Library of the House.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Following scrutiny of the Government’s costing by the independent Office for Budget Responsibility, the Government will confirm its approach to these reforms at the Budget on 30 October. The Government will set out its assessment of relevant expected impacts, including any expected pupil migration, in a Tax Information and Impact Note (TIIN).
Asked by: Lord Altrincham (Conservative - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government what is their estimate of the number of pupils who would have to leave the independent schools sector following the imposition of VAT on school fees for expenditure on additional state school places to exceed the additional tax revenue generated.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Following scrutiny of the Government’s costing by the independent Office for Budget Responsibility, the Government will confirm its approach to these reforms at the Budget on 30 October. The Government will set out its assessment of relevant expected impacts, including any expected pupil migration, in a Tax Information and Impact Note (TIIN).