Oral Answers to Questions

Bim Afolami Excerpts

Tuesday 9th April 2019 Commons Chamber

[Mr Hammond]

The hon. Lady is absolutely right. As well as pursuing tax avoiders themselves, we have to pursue those who promote tax avoidance. My right hon. Friend the Financial Secretary has just told me that there are over 100 promoters of avoidance schemes who are currently under active investigation by HMRC.

[Bim Afolami (Hitchin and Harpenden) (Con)]

14. What steps his Department is taking to encourage people to save for their pensions.

[The Economic Secretary to the Treasury (John Glen)]

Automatic enrolment has reversed the decade-long decline in workplace pension saving. Department for Work and Pensions statistics show that since 2012 over 10 million people have been automatically enrolled into a pension. Minimum contributions increased this month to 8%, and everyone who is contributing at the minimum rate should see an increase in their overall remuneration package.

[Bim Afolami]

I thank the Minister for that response. One of my constituents in Hitchin is a stay-at-home mother, and the maximum she can contribute to her pension is £3,000 per year, whereas if she were working, she could contribute up to £40,000 per year. I am sure the Minister will agree that we want to encourage people to save for their future. How can we increase the threshold so that stay-at-home parents can increase the amount they put into their pensions?

[John Glen]

The Government do offer generous tax relief on contributions to, and investment growth within, pensions. We also enable tax-free access to a proportion of savings. It is right that the Government control the cost of tax reliefs, and the £3,600 limit is one method of doing that. I can assure my hon. Friend that all aspects of pension policy and the tax system are kept under review in the context of the wider public finances.