Speeches made during Parliamentary debates are recorded in Hansard. For ease of browsing we have grouped debates into individual, departmental and legislative categories.
These initiatives were driven by Baroness Altmann, and are more likely to reflect personal policy preferences.
A Bill to set a ceiling on the main and additional primary percentages, the secondary percentage and the upper earnings limit in relation to Class 1 national insurance contributions.
This Bill received Royal Assent on 17th December 2015 and was enacted into law.
A Bill to amend the Alternative Investment Fund Managers Regulations 2013 to remove Listed Investment Companies from Alternative Investment Fund designation; to make related changes to other relevant legislation; and for connected purposes.
Baroness Altmann has not co-sponsored any Bills in the current parliamentary sitting
Overall staff figures for the Office for Equality and Opportunity total 133.8 Full Time Equivalents, of which the Race Equality Unit total 6 FTE, the Disability Unit total 19.8 FTE and the Women and Equalities Unit total 36.5 FTE. This excludes any temporary time limited resource from wider Cabinet Office.
Unlawful age discrimination is unacceptable, whether occurring in employment, the provision of services or any other context covered by the Equality Act 2010. Any differential treatment based on age must be objectively justifiable, otherwise it will rightly be unlawful.
In a workplace context the abolition of the default retirement age has helped older workers and where unlawful treatment is alleged, the employee may take their case to an employment tribunal. As a first step in any dispute, the parties may consult Acas which operates a Government-funded helpline for people with employment disputes and early conciliation by Acas is required before a claim reaches a tribunal hearing.
The Government keeps all aspects of the Equality Act 2010 under review, to ensure they remain fit for purpose.
The Minister for Women and Equalities and the Minister of State for Women and Equalities both have responsibility for ensuring that older people are protected from unlawful ageism (age discrimination) by maintaining the existing strong protections in the Equality Act 2010. These protections make it unlawful for an employer, service provider or someone exercising public functions to treat a person less favourably because of age, unless this can be objectively justified.
The current SAFE Framework outlines four principles to ensure brand safety in government advertising: Safety and Suitability, Ads Context, Freedom of Speech, and Ethics and Enforcement.
Within the 'Safety and Suitability' principle, the framework emphasises that government advertising must not appear alongside content that:
Protected groups are defined under the Equality Act 2010 as age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, sexual orientation.
The Government Equalities Office is part of the Cabinet Office for management and staffing purposes. The EDI Expenditure Guidance published in May 2024 remains in place.
Data on the specific number of working hours used for network activity is not held centrally. The majority of staff time spent on diversity staff networks is voluntary and unpaid.
The Government Equalities Office is part of the Cabinet Office for management and staffing purposes. The EDI Expenditure Guidance published in May 2024 remains in place.
Data on the specific number of working hours used for network activity is not held centrally. The majority of staff time spent on diversity staff networks is voluntary and unpaid.
A National Audit Office (NAO) report published on 20th March 1998 on the sale of AEA Technology sets out that then Department of Trade and Industry (DTI) sold AEA Technology (formerly part of the UK Atomic Energy Authority) in 1996 for £224 million. In addition, DTI received a dividend of £3.75 million giving total gross proceeds of £227.75 million.
The Government has consulted on proposed changes to how support provided through the Feed-in Tariffs and Renewable Obligation schemes is adjusted for inflation. The consultation was accompanied by an analytical annex which set out the potential impacts of the policy. Updated analysis will be published alongside the Government Response next year.
The information requested is set out in the table below:
Number of members in payment | ||
Annual pension | Mineworkers’ Pension Scheme | British Coal Staff Superannuation Scheme |
Under £5,000 | 40,716 | 5,871 |
£5,000 - £15,000 | 49,038 | 11,662 |
£15,000 - £30,000 | 12,869 | 11,858 |
£30,000 - £50,000 | 2,321 | 4,973 |
Over £50,000 | 124 | 2,577 |
We know that digital exclusion is a complex issue and the evidence base is significant but fragmented. Ofcom data from 2025 reports that 95% of 16 – 74 year olds, 78% of those aged 65+ and 65% of those aged 75+ have a smartphone in their household and personal use one.
In February, we published our Digital Inclusion Action Plan – First Steps which sets out the immediate actions we are taking on digital inclusion. One of these actions was to develop robust headline indicators to monitor progress and inform future digital inclusion interventions. We will evaluate the outcomes of these actions in due course.
The Department for Science, Innovation and Technology has 19 colleague-run networks, 11 of which are diversity-related. Time taken on network activities is agreed between individuals and line managers- no formal facility time is allocated. No network holds a delegated budget, and there are currently no plans to revise this approach.
UKRI has 12 network co-chairs across 8 formally supported staff networks. Co-chairs are allocated 1 day per month to carry out network related activities which includes work on organisation-led EDI priorities and reporting on network activities to governance. All 8 networks receive funding for their activities (in financial year 2023/24 this was less than £5,000). There are no plans to alter these funding arrangements.
Clubs will be required to report on what action they are taking with regard to equality, diversity and inclusion (EDI) as part of the corporate governance code included within the Football Governance Bill.
EDI is a key part of good corporate governance. Good EDI on boards and in clubs promotes better governance, decision-making and transparency, all of which links to improved financial sustainability.
The Higher Education Statistics Agency (HESA) is responsible for collecting and publishing data on the UK’s higher education (HE) sector and specifies which data HE providers should collect from students. All HE providers with a statutory requirement to report data to HESA are asked to return data on students’ sex. HE providers in England, Wales and Northern Ireland are asked to return data on students’ gender identity (whether their gender identity aligns with their sex registered at birth), and providers in Scotland may optionally return data on students’ transgender status.
Certain HE providers in England, which are registered with the Office for Students, are required to provide data on the number of applications, offers, acceptances and completion rates by gender, under an ongoing condition of registration in respect of transparency information.
HE providers are required under the Equality Act 2010 to eliminate unlawful discrimination and harassment, but also to actively advance equality. This may include collecting relevant data to monitor and improve their policies and delivery of services.
All HE providers must adhere to data protection legislation when processing students’ personal data, ensuring that it is collected and processed lawfully, fairly, and transparently, and are required to publish privacy notices setting out what types of personal data they collect and how they will process it.
The delivery of Equality, Diversity and Inclusion Staff Network activity is agreed between networks and departments as the employer. This includes permitted time allocation and any funding arrangements. The majority of staff time spent on diversity staff networks is voluntary and unpaid.
Defra does not afford any protected time to network leads or co-chairs or anyone involved in network activity.
Time allocation
The Department for Transport Core (DfTc) and the Driver and Vehicle Licencing Agency (DVLA) do not allocate a specified amount of time for staff to spend on diversity-related network activities. Civil Service guidance for diversity-related networks requires that time being spent on EDI activities by volunteers, where it is not part of an individual’s core role, is appropriate, reasonable and proportionate.
Funding
At present none of the networks within Department for Transport Core (DfTc) and the Driver and Vehicle Licencing Agency (DVLA) are funded. We are currently reviewing our staff networks and any future funding will align with the guidance on EDI Expenditure published on 14th May 2024.
The Department for Work and Pensions does not hold information on how much funding was transferred to the Atomic Energy Authority Technology private sector pension scheme in 1996 and does not hold all the communications that were provided to members of the Atomic Energy Authority Technology pension scheme in 1996.
The Pension Protection Fund (PPF) does not permit transfers out because the PPF does not work as a segregated fund, where individual schemes contributions are ringfenced.
The Department for Work and Pensions does not hold information on how much funding was transferred to the Atomic Energy Authority Technology private sector pension scheme in 1996 and does not hold all the communications that were provided to members of the Atomic Energy Authority Technology pension scheme in 1996.
We recognise the challenges members of the AEA Technology pension scheme face and are directly tackling the point you raise about the loss of inflation protection. The Chancellor announced at the Budget that this Government will introduce annual increases on compensation payments from the Pension Protection Fund and Financial Assistance Scheme that relate to pensions built up before 6 April 1997. These will be Consumer Prices Index-linked (capped at 2.5%) and apply prospectively (i.e. to payments going forward) for members whose former schemes provided for these increases.
I am pleased to confirm that past members of the AEA Technology pension scheme with pre-97 accrual will benefit from this measure.
As of 16 December 2025, 1,045 schemes have transferred into the Financial Assistance Scheme.
The Pension Protection Fund (PPF) holds a significant amount of scheme information. We are confident that the PPF will be able to identify the information needed and successfully implement the reforms to award pre-97 indexation uplifts to compensation payments.
The PPF is reviewing the information it holds for each scheme. Alongside scheme rules, the PPF will use additional data sources, including scheme return data, member booklets, data provided on transfer, valuation reports, annuity reports, and bulk buyout schedules.
Where the position is unclear, the clauses within the Pension Schemes Bill provide that the presumption is in favour of the members. In such cases, the PPF will award pre-97 indexation.
For the 2024/25 financial year to date (1 April 2024 to 31 January 2025) the average processing time for Attendance Allowance is 19 working days (with Monday to Friday being defined as working days). There is a quick application process for people who have been diagnosed with a terminal illness and aren't expected to live more than 12 months. These claims are fast tracked.
Attendance Allowance is currently undergoing a significant modernisation reform through the piloting of an on-line digital claim process as a part of the department’s wider Service Modernisation plans.
Please note, the Average Actual Clearance Time figures shown is unpublished management information, collected and intended for internal departmental use and has not been quality assured to National Statistics or Official Statistics publication standard. It is rounded to the nearest working day.
We remain committed to meeting the Chancellor’s commitment to bringing together the administration of Pension Credit and pensioner Housing Benefit. We are seeking to do this in a way that best meets the needs of current and future pensioners.
The Department is working closely with local authorities and undertaking detailed policy exploration to ensure that the best approach is identified.
Alongside this work, we are improving our use of established data streams to target new pensioner Housing Benefit customers to ensure that they are prompted to claim and receive any Pension Credit to which they are entitled. As part of this initiative, we have successfully sent out 1,000 letters to citizens, encouraging them to make a claim for Pension Credit.
Employers are responsible for choosing a workplace pension scheme for their qualifying employees under the automatic enrolment framework.
The Pensions Regulator provides guidance for employers about how to comply with their automatic enrolment duties, including the information they must share with eligible employees.
From October 2022, new requirements were introduced for schemes used for automatic enrolment to provide a simpler annual benefit statement. The Department continues to work with the Financial Conduct Authority and The Pensions Regulator to ensure compliance. Additionally, the Department plans to monitor/review the regulations within 5 years of being introduced as per the regulations (Occupational and Personal Pension Schemes (Disclosure of Information) (Statements of Benefits: Money Purchase Benefits) (Amendment) Regulations 2021)).
The Department publishes annual official statistics on workplace pension participation and saving trends. This provides estimates on the total amount saved into workplace pensions for those eligible for Automatic Enrolment, which was over £131bn in 2023. The table below holds the estimates of the total amount saved over the last 5 years, in 2023 earnings terms, which are also found in the official statistics noted above. As requested, the breakdowns by DB and DC schemes and other/unknown are also shown.
(£ Billions) in 2023 earnings terms | 2019 | 2020 | 2021 | 2022 | 2023 |
Defined Contribution (DC) | 49.3 | 49.9 | 53.8 | 55.7 | 60.8 |
Defined Benefit (DB) | 63.8 | 68.6 | 72.5 | 64.8 | 65.8 |
Other/Unknown | 1.5 | 2.0 | 2.4 | 2.2 | 5.2 |
Total | 114.6 | 120.5 | 128.7 | 122.8 | 131.8 |
Notes: Estimates of amounts saved into workplace pensions are derived from ONS Annual Survey of Hours and Earnings (ASHE) data. The saving attributed to ‘other/unknown’ is a result of respondents answering ‘unknown’ or failing to answer when asking what their workplace pension scheme type was, despite reporting a positive value of pension saving.
The Pensions Regulator’s (TPR’s) strategy is wide-ranging, to ensure that it is fully inclusive and includes groups beyond the nine protected characteristics under the Equality Act 2010, that encompass sex and gender reassignment. TPR uses ‘gender’ as was defined by the Office of National Statistics at the time the strategy was published, and will review their EDI Policy at the point of strategy refresh or when ONS issue new guidance, if earlier.
From October 2022, new requirements were introduced for schemes used for automatic enrolment to provide a simpler annual benefit statement. The Department continues to work with the Financial Conduct Authority and The Pensions Regulator to ensure compliance. Additionally, the Department plans to monitor/review the regulations within 5 years of being introduced as per the regulations (Occupational and Personal Pension Schemes (Disclosure of Information) (Statements of Benefits: Money Purchase Benefits) (Amendment) Regulations 2021)).
The Department publishes annual official statistics on workplace pension participation and saving trends. This provides estimates on the total amount saved into workplace pensions for those eligible for Automatic Enrolment, which was over £131bn in 2023. The table below holds the estimates of the total amount saved over the last 5 years, in 2023 earnings terms, which are also found in the official statistics noted above. As requested, the breakdowns by DB and DC schemes and other/unknown are also shown.
(£ Billions) in 2023 earnings terms | 2019 | 2020 | 2021 | 2022 | 2023 |
Defined Contribution (DC) | 49.3 | 49.9 | 53.8 | 55.7 | 60.8 |
Defined Benefit (DB) | 63.8 | 68.6 | 72.5 | 64.8 | 65.8 |
Other/Unknown | 1.5 | 2.0 | 2.4 | 2.2 | 5.2 |
Total | 114.6 | 120.5 | 128.7 | 122.8 | 131.8 |
Notes: Estimates of amounts saved into workplace pensions are derived from ONS Annual Survey of Hours and Earnings (ASHE) data. The saving attributed to ‘other/unknown’ is a result of respondents answering ‘unknown’ or failing to answer when asking what their workplace pension scheme type was, despite reporting a positive value of pension saving.
No estimate has been made as the requested information is not available.
The Pensioners' Incomes series provides figures on how much income pensioners get each week and where they get that income from, but does not include all passported benefits. More information on the Pensioners’ Incomes series can be found on Gov.uk.
Pensioners' Incomes: financial years ending 1995 to 2023 - GOV.UK (www.gov.uk)
No estimate has been made.
Estimates for pensioner households who are eligible for but not receiving Pension Credit in 2022/23 are available on Gov.uk.
Income-related benefits: estimates of take-up: financial year ending 2023 - GOV.UK (www.gov.uk)
For financial year 2022/23, we estimate that the number of pensioner units with gross annual income below £15,000 is approximately 1.6 million. Of those, we estimate 0.3 million are in receipt of Pension Credit.
This estimate is based on Pensioners’ Incomes and Households Below Average Income data derived from the Family Resources Survey and covers private households in the United Kingdom. Income is calculated as total income of the pensioner unit, including benefits such as State Pension and Pension Credit, occupational and personal pensions, investment income and earnings.
A pensioner unit can be a single pensioner over State Pension age, a pensioner couple where one member is over State Pension age, or a pensioner couple where both members are over State Pension age.
We want all eligible pensioners to apply for Pension Credit and so the Department is continuing to maximise opportunities to promote Pension Credit.
Like all means-tested benefits, a person’s eligibility for Pension Credit and the amount they may get depends on their specific financial and personal circumstances. Full eligibility criteria are available on gov.uk at the following link: Pension Credit: Eligibility - GOV.UK (www.gov.uk)
That’s why we encourage anyone who thinks they may be entitled to check whether they can get Pension Credit.
This Autumn, we will be directly contacting pensioners who are in receipt of Housing Benefit but who may be eligible for, but not currently claiming, Pension Credit – building on last years ‘Invitation to Claim’ trial.
From 16th September we have launched a Pension Credit awareness campaign across press, radio and social media and I know that the devolved administrations in Wales and Scotland, along with local authorities and organisations such as Age UK, are also undertaking promotional activities.
The Department continues to maximise opportunities to promote Pension Credit and to raise awareness of its wider benefits and to encourage pensioners to apply. The department uses a range of creative media including TV, press, radio and social media to boost awareness of the benefit. We engage with stakeholders, including other Government Departments, Councils, and charities, to harness their help and support to raise awareness through their networks and channels.
The Government is ensuring pensioners are supported through our commitment to protect the Triple Lock, over 12 million pensioners will benefit, with many expected to see their new State Pension increase by around £1700 over the course of this Parliament.
Additionally, the Government will invest an extra £6.6 billion over this Parliament in clean heat and energy efficiency through the Warm Homes Plan, upgrading five million homes through solutions like low carbon heating and improved insulation to reduce emissions and cut bills.
The Household Support Fund is also being extended for a further six months, from 1 October 2024 until 31 March 2025. An additional £421 million will be provided to enable the extension of the HSF in England, plus funding for the Devolved Governments through the Barnett formula to be spent at their discretion, as usual.
The Warm Home Discount scheme in England and Wales provides eligible low-income households across Great Britain with a £150 rebate on their electricity bill. This winter, we expect over three million households, including over one million pensioners, to benefit under the scheme.
The National Health Service website, along with the National Institute for Health and Care Excellence and the Royal Osteoporosis Society, has information and resources for patients to learn about osteoporosis, including advice on how to manage osteoporosis and advice on lifestyle changes that patients can make to improve their bone health and reduce their risk of fractures. The Royal College of General Practitioners’ e-learning module on the diagnosis and management of osteoporosis also provides suggested resources that clinicians can use with their patients.
NHS Blood and Transplant (NHSBT) is responsible for blood services in England. NHSBT Logistics plays a key role in planning for, collecting, and delivering lifesaving and life changing donated blood products to hospitals across England. However, NHS England owns and manages the contract with Octapharma to fractionate and produce medicines, including immunoglobulin and albumin. These medicines have been approved by the Medicines and Healthcare products Regulatory Agency (MHRA) to reflect the priorities of the National Health Service.
No blood is discarded by NHSBT due to MHRA authorisations. If there are any discarded fractions by Octapharma, NHSBT does not hold this information. All of the plasma that meets the requirements for use in medicines is forwarded to Octapharma for fractionation, and the specific manufacturing arrangements are subject to commercial confidentiality.
We remain committed to rolling out Fracture Liaison Services (FLS) across every part of the country by 2030. That is what my Rt Hon. Friend, the Secretary of State for Health and Social Care promised before the election, and what he is delivering.
In the meantime, we are investing in 14 high-tech bone density DEXA scanners, which are expected to provide an extra 29,000 scans, to ensure that people with bone conditions get diagnosed earlier
FLS are a globally recognised care model and can reduce the risk of refracture for people at risk of osteoporosis by up to 40%. They can play a vital role in improving quality of life and increasing the number of years that can be lived in good health.
The Government and NHS England support the clinical case for services which help to prevent fragility fractures and support the patients who sustain them. Officials continue to work closely with NHS England to explore a range of options to provide better quality and access to these important preventative services. Impacts will be assessed, as these options are considered, taking into consideration the evidence gathered from the 60 services already in operation in England.
More than 500,000 fragility fractures occur every year, and up to 40% of fracture patients will suffer another fracture.
This Government and NHS England support the clinical case for services which help to prevent fragility fractures and support the patients who sustain them. That is why this Government is committed to the expansion of Fracture Liaison Services and is working closely with NHS England to develop rollout plans to end the postcode lottery.
The Government is committed to expanding access to Fracture Liaison Services. The Department is working closely with NHS England to develop rollout plans to ensure better quality and access to these important preventative services, to fill the current gaps in coverage.
I refer the Noble Baroness to the answer I provided on 27 November to Question HL11630.
The UK has allocated £74 million so far this financial year to support the humanitarian response in Gaza. This includes £3 million for the United Nations Population Fund, which supports their response and early recovery under four pillars: sexual and reproductive health; sexual violence; adolescents and youths; and interagency coordination. We are also working closely with partners to support implementation of the next phase of the US-led peace plan, including establishing transitional security arrangements. Within this work, we will continue to prioritise the needs of civilians, particularly women and children.
The FCDO's flag flying policy is that all our buildings should fly the Union flag, as appropriate, throughout the year on working days during office hours. In addition, the FCDO continues to fly the Ukrainian flag from the secondary flagpole at King Charles Street. Any other flags flown on the estate are considered on a case-by-case basis and must have a compelling reason for inclusion. The FCDO does not advertise in advance which additional flags it will be flying and when.
Following the independent review by Catherine Colonna the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) set out an action plan with detailed management reforms including stronger independent oversight, better detection systems, improved screening procedures, mandatory training for staff on humanitarian principles and more proactive donor engagement. As a result, we are assured that UNRWA is taking action to ensure it meets the highest standards of neutrality.
£1 million of the UK's £21 million support to UNRWA this financial year will support implementation of these reforms. The FCDO will also continue to conduct its own annual assessment of UK funding to UNRWA.
When the Foreign Secretary announced the resumption of funding on 19 July 2024, he said that UNRWA has taken serious action in response to the appalling allegations that UNRWA staff were involved in the 7 October attack against Israel. The government is confident that UNRWA is taking action to ensure it meets the highest standards of neutrality and is strengthening its procedures. £1 million of the £21 million of new UK funding will be earmarked to support UNRWA implement the management reforms recommended by the Colonna review. Together with other donors, we will continue to monitor UNRWA's progress on implementation of its action plan. The FCDO will also continue to conduct our own annual assessment of UK funding to UNRWA.
The scope of the qualifying assets provisions in the Bill’s asset allocation reserve powers are designed to reflect the scope of the Mansion House Accord, a voluntary expression of intent by seventeen major pension providers to invest 10% of their main defined contribution default funds in private markets, including 5% in UK private markets.
This reflects the Government’s intention that the reserve powers should not be open-ended but should be capable of serving as a limited backstop to the commitments made in the Mansion House Accord.
The Government wants to make sure that those who have the ability to put away money for the long-term can do so. The Long-Term Asset Fund (LTAF) provides investors with the opportunity to invest in long-term alternative assets, such as venture capital, private equity, real estate and infrastructure, that can offer higher returns in exchange for limited liquidity.
The Financial Conduct Authority have designed robust governance requirements for the LTAF, so investors who understand the risks of investing in long‑term less liquid assets are able to invest with confidence. Where a firm markets an LTAF to a retail investor, the firm must provide appropriate risk warnings and conduct an appropriateness assessment.
Most unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes from 6 April 2027. This removes distortions which have led to pensions being openly used and marketed as a tax planning vehicle to transfer wealth, rather than as a way to fund retirement. These reforms also remove inconsistencies in the inheritance tax treatment of different types of pensions.
Inheritance tax should be paid within 6 months from the end of the month after the date of death, or late payment interest will begin to accrue on the outstanding tax. This is a longstanding requirement that ensures the tax is collected quickly and efficiently. However, the Government recognises the difficulties personal representatives may face in paying the inheritance tax due and offers several payment options to help. This includes the direct payment scheme, which allows personal representatives to instruct banks and building societies to transfer funds from the deceased’s bank or building accounts before probate is granted.
The Government also announced changes at the Budget in November 2025 which mitigate the risks to personal representatives by providing them with the ability to direct pension scheme administrators to withhold taxable benefits for up to 15 months from the date of death and to direct them to make payments of inheritance tax directly to HMRC. The changes also protect personal representatives from risk that lost pension pots emerge later by discharging them from liability where they have received clearance from HMRC. Furthermore, to ensure that the process of calculating, reporting and paying inheritance tax does not take longer than necessary, the Government will introduce regulations setting out deadlines for the parties involved to exchange information.
These changes are consistent with the process which already exists for administering estates and paying any inheritance tax due. Personal representatives are already responsible for administering the rest of the estate, including non-discretionary pension schemes which are already in scope of inheritance tax. The Government will publish further guidance and tools to support personal representatives in readiness for these changes being implemented in 2027.
Most unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes from 6 April 2027. This removes distortions which have led to pensions being openly used and marketed as a tax planning vehicle to transfer wealth, rather than as a way to fund retirement. These reforms also remove inconsistencies in the inheritance tax treatment of different types of pensions.
Inheritance tax should be paid within 6 months from the end of the month after the date of death, or late payment interest will begin to accrue on the outstanding tax. This is a longstanding requirement that ensures the tax is collected quickly and efficiently. However, the Government recognises the difficulties personal representatives may face in paying the inheritance tax due and offers several payment options to help. This includes the direct payment scheme, which allows personal representatives to instruct banks and building societies to transfer funds from the deceased’s bank or building accounts before probate is granted.
The Government also announced changes at the Budget in November 2025 which mitigate the risks to personal representatives by providing them with the ability to direct pension scheme administrators to withhold taxable benefits for up to 15 months from the date of death and to direct them to make payments of inheritance tax directly to HMRC. The changes also protect personal representatives from risk that lost pension pots emerge later by discharging them from liability where they have received clearance from HMRC. Furthermore, to ensure that the process of calculating, reporting and paying inheritance tax does not take longer than necessary, the Government will introduce regulations setting out deadlines for the parties involved to exchange information.
These changes are consistent with the process which already exists for administering estates and paying any inheritance tax due. Personal representatives are already responsible for administering the rest of the estate, including non-discretionary pension schemes which are already in scope of inheritance tax. The Government will publish further guidance and tools to support personal representatives in readiness for these changes being implemented in 2027.
Most unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes from 6 April 2027. This removes distortions from changes that have been made to pensions tax policy over the last decade, which have led to pensions being openly used and marketed as a tax planning vehicle to transfer wealth, rather than as a way to fund retirement. These reforms also remove inconsistencies in the inheritance tax treatment of different types of pensions.
A flat rate tax charge would be a very different policy with very different impacts. Fewer than 10% of estates annually are forecast to have an inheritance tax liability in the coming years. A flat rate tax charge on pensions would impact a different, and large, population of individuals below the current inheritance tax thresholds. This approach would not be equitable as it would require the majority of estates to pay more so that a small share of estates could pay less.
If the flat rate is set at a lower rate than the current rate of inheritance tax, this would lead to unused pension funds being taxed more lightly than other assets subject to inheritance tax at a rate of 40%. This would likely mean that pensions would continue to be used as a tax planning vehicle for the wealthiest individuals.
Estimates of Income Tax relief on pension contributions can be found in Table 6 of the Private Pension Statistics publication. [1]
Table 6 summary: Estimated cost of pension Income Tax and National Insurance contribution (NIC) relief (£million) | |||
| 2021 to 2022 tax year [revised] | 2022 to 2023 tax year [revised] | 2023 to 2024 tax year [provisional] |
Total pension Income Tax relief | 45,300 | 47,800 | 54,200 |
- of which on Net Pay Arrangement contributions by employees | 5,100 | 5,500 | 6,200 |
- of which on Net Pay Arrangement contributions by employers | 16,100 | 17,400 | 20,800 |
- of which on Relief at Source scheme contributions by employees | 3,600 | 3,900 | 4,400 |
- of which on Relief at Source scheme contributions by self-employed individuals | 800 | 800 | 1,000 |
- of which on Relief at Source scheme contributions by employers | 5,900 | 6,700 | 8,100 |
- of which on Salary Sacrificed contributions by employees | 5,100 | 6,000 | 7,200 |
- of which on Deficit Reduction Contributions by employers | 4,300 | 3,100 | 2,100 |
Figures are in £ million and rounded to the nearest £100 million.
The column totals may not equal the sum of the individual components due to rounding.
HMRC does not hold data on the cost of the tax exemption of capital gains in pension funds.
[1] This publication can be access via the following link: https://www.gov.uk/government/statistics/personal-and-stakeholder-pensions-statistics
The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at fiscal events in the usual way.
Estimates of Income Tax relief on pension contributions can be found online in Table 6 of the Private Pension Statistics publication. [1] Estimates of the cost per year of Income Tax and National Insurance contribution relief, broken down by type of pension, can be found in Tables 6.1 and 6.2 of the publication respectively.
Table 6 summary: Estimated cost of pension Income Tax and National Insurance contribution (NIC) relief | |
Estimated cost of pension Income Tax and NICs relief | 2023 to 2024 tax year [provisional] |
Total pension Income Tax relief | 54,200 |
- of which contributed to a defined benefit scheme | 24,100 |
- of which contributed to a defined contribution scheme | 30,000 |
Total pension National Insurance Contributions (NICs) relief | 24,000 |
- of which contributed to a defined benefit scheme | 11,800 |
- of which contributed to a defined contribution scheme | 12,100 |
Total pension Income Tax and NICs relief (gross of tax charges) | 78,200 |
[1] https://www.gov.uk/government/statistics/personal-and-stakeholder-pensions-statistics