Pensions

(asked on 27th June 2023) - View Source
Questioner
Baroness Altmann Portrait
Baroness Altmann
(Non-affiliated - Life peer)

Question to the HM Treasury:

To ask His Majesty's Government what were the total pension contributions to (1) Defined Benefit or hybrid schemes, (2) Defined Contribution auto-enrolment workplace schemes, and (3) other pension schemes, in each of the past three years.

Answered by
Baroness Penn Portrait
Baroness Penn
This question was answered on 7th July 2023

Estimates of the cost of Income Tax and National Insurance Contribution relief on total pension contributions made in 2020 to 2021 can be found in Tables 1 and 2 below. Figures are provided in millions and rounded to the nearest hundred million pounds. Hybrid defined contribution and defined benefit schemes are counted as defined benefit schemes for the purpose of this analysis.

HMRC do not publish estimates of total pension contributions.

Table 1: Income Tax relief on pension contributions in 2020 to 2021 by type of contribution, £million

Income Tax relief in 2020 to 2021 [provisional] on:

Defined benefit scheme

Defined contribution scheme

Individual contributions to net pay arrangements

3,600

900

Individual contributions to relief at source schemes

0

4,900

Salary sacrificed contributions

1,100

3,600

Employer contributions to net pay arrangements

16,800*

4,100

Employer contributions to relief at source schemes

0

5,900*

Table 2: National Insurance Contribution (NIC) relief on pension contributions in 2020 to 2021 by type of contribution, £million

NIC relief in 2020 to 2021 [provisional] on:

Defined benefit scheme

Defined contribution scheme

Class 1 Primary (employee) NIC relief on employer contributions to net pay arrangements

4,900*

1,000

Class 1 Primary (employee) NIC relief on employer contributions to relief at source schemes

0

1,500*

Class 1 Primary (employee) NIC relief on salary sacrificed contributions

300

800

Class 1 Secondary (employer) NIC relief on employer contributions to net pay arrangements

8,200*

1,800

Class 1 Secondary (employer) NIC relief on employer contributions to relief at source schemes

0

2,700*

Class 1 Secondary (employer) NIC relief on salary sacrificed contributions

500

1,500

*These figures contain forecasts rather than being entirely based on outturn data sources.

Please note that the figures provided are estimates only.

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