Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of proposed changes to Salary Sacrifice Pension arrangements from 2029 on employer National Insurance costs for charities.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.

Everyone using salary sacrifice will still benefit from the tax advantages available up to the £2,000 cap, including employers who can make up to £320 employer NICs savings per employee. Most salary sacrifice contributions are well below the £2,000 cap. This applies for all employers, including employers in the charity sector.

Employer pension contributions outside of salary sacrifice will continue to be NICs-free.

The Government also provides support for charities via our wider tax regime. It is among the most generous anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.