Occupational Pensions: Tax Allowances

(asked on 18th October 2018) - View Source

Question to the Department for Work and Pensions:

To ask Her Majesty's Government what steps they are taking to protect low earners from losing out on tax relief in automatic pension enrolment.


Answered by
Baroness Buscombe Portrait
Baroness Buscombe
This question was answered on 1st November 2018

Automatic enrolment is a great success story with more than 9.9 million workers enrolled into workplace pension saving and over 1.3 million employers meeting their duties to date.

Under automatic enrolment the employer is responsible for putting in place a qualifying workplace pension scheme for their eligible workers. Employers have a choice, in the marketplace, of a number qualifying workplace pension schemes that can be used to fulfil their automatic enrolment duties; including the National Employment Savings Trust (NEST). NEST has no set-up costs, and a public service obligation to accept any employer who meets their scheme’s terms and conditions.

The Pensions Regulator provides guidance to employers on choosing a pension scheme for their staff in order to discharge their statutory obligations under automatic enrolment. This provides information about the choice between net pay and relief at source schemes, and the implications of net pay schemes for employees who do not pay tax.

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