Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of taxing pension contributions above £2,000 on people in Sussex in part-time work.

The existing income tax relief regime for pensions is unaffected by this change, whilst employer contributions can continue to be made free of National Insurance Contributions (NICs).

Salary and bonus sacrifice is an additional NICs relief that is only available to some employees. Those whose employer does not offer it, the self-employed and those with earnings near the National Living Wage cannot benefit.

Individuals earning below £30,000 making pension contributions through salary sacrifice are overwhelmingly protected by a £2,000 cap, with few (c. 5%) making salary sacrifice contributions above this threshold.

A Tax Information and Impact Note will be published in due course alongside the legislation when it is introduced to Parliament.