National Insurance Contributions (Employer Pensions Contributions) Bill 2024-26

7

Clause 1, page 2, line 26, leave out from “as” to end and insert “the amount calculated under subsection (5) for a tax year (but subject to any provision made in reliance on subsection (6C)(a) or (b) of that section).
(5) In 2029-30 the contributions limit must be set at a figure equal to £2,000 uprated by any percentage change in the consumer price index between 2026-27 and 2028-29.
(6) In subsequent tax years the contributions limit must be uprated by the same percentage change as that applied to the consumer price index that year.”

This amendment would uprate the £2,000 cap by the percentage change in the consumer price index during the period before 2029-30, and would require the cap to be uprated by the same percentage as the change in the consumer price index each year thereafter.

8

Clause 2, page 3, lines 39, leave out from “as” to end and insert “the amount calculated under subsection (5) for a tax year (but subject to any provision made in reliance on subsection (6C)(a) or (b) of that section).
(5) In 2029-30 the contributions limit must be set at a figure equal to £2,000 uprated by any percentage change in the consumer price index between 2026-27 and 2028-29.
(6) In subsequent tax years the contributions limit must be uprated by the same percentage change as that applied to the consumer price index that year.”

This amendment would uprate the £2,000 cap in Northern Ireland by the percentage change in the consumer price index during the period before 2029-30, and would require the cap to be uprated by the same percentage as the change in the consumer price index each year thereafter.

5

Clause 1, page 1, line 10, after “income tax” insert “at the higher or additional rate”

This amendment would exempt basic rate taxpayers in England, Wales and Scotland from the £2,000 cap.

1

Clause 1, page 2, line 26, leave out “£2,000” and insert “the amount calculated under subsection (5)”

This amendment, with Amendment 2 would uprate the £2,000 cap by the percentage change in the national living wage during the period before 2029-30, and would require the cap to be uprated by the same percentage as the change in the national living wage each year thereafter.

2

Clause 1, page 2, line 27, at end insert—
“(5) In 2029-30 the contributions limit must be set at a figure equal to £2,000 uprated by any percentage change in the national living wage between 2026-27 and 2028-29.
(6) In subsequent tax years the contributions limit must be uprated by the same percentage change as that applied to the national living wage that year.”

This amendment, with Amendment 1 would uprate the £2,000 cap by the percentage change in the national living wage during the period before 2029-30, and would require the cap to be uprated by the same percentage as the change in the national living wage each year thereafter.

6

Clause 2, page 2, line 38, after “income tax” insert “at the higher or additional rate”

This amendment would exempt basic rate taxpayers in Northern Ireland from the £2,000 cap.

3

Clause 2, page 3, lines 39, leave out “£2000” and insert “the amount calculated under subsection (5)”

This amendment has the same effect as Amendment 1, but for Northern Ireland.

4

Clause 2, page 3, line 41, at end insert—
“(5) In 2029-30 the contributions limit must be set at figure equal to £2,000 uprated by any percentage change in the national living wage between 2026-27 and 2028-29.
(6) In subsequent tax years the contributions limit must be uprated by the same percentage change as that applied to the national living wage that year.”

This amendment has the same effect as Amendment 2, but for Northern Ireland.

NC4

To move the following Clause—
“Reviews of the impact of the Act
(1) The Treasury must, before March 2029, lay before Parliament an assessment of the impact of the changes made under this Act.
(2) The assessment made under subsection (1) must consider—
(a) the adequacy of pension contributions made by or on behalf of individuals affected by this Act,
(b) use of salary sacrifice schemes and optional remuneration arrangements, and
(c) any effects on the investment capability of UK pension funds.
(3) The Treasury must lay before Parliament a follow-up assessment of the impact of the changes made under this Act before March 2034.”

This new clause would require the Treasury to undertake an impact assessment of the effect of the change made under this Act, before they take effect, and again five years later.

NC5

To move the following Clause—
“Calculation and publication of lifetime pension values
(1) The Treasury must calculate and publish the projected lifetime value of an individual’s pension before and after the changes made by under this Act.
(2) For the purposes of subsection (1), the projected lifetime value is the total amount of pension income an individual is expected to receive over their lifetime.
(3) The calculations made under subsection (1) must—
(a) be based on clearly stated assumptions, and
(b) include illustrative examples covering different pension entitlements.”

NC6

To move the following Clause—
“Assessment of changes to pension saving through salary sacrifice schemes
(1) The Chancellor of the Exchequer must, within 15 months of the provisions of this Act coming into effect, lay before Parliament an assessment of the effect of this Act on the amount saved into pensions through salary sacrifice schemes.
(2) The assessment made under subsection (1) must include an—
(a) estimate of the total amount saved into pensions through salary sacrifice schemes in the 12 months preceding the provisions of this Act coming into effect,
(b) estimate of the total amount saved into pensions through salary sacrifice schemes in the 12 months following the provisions of this Act coming into effect, and
(c) an assessment of the difference between those amounts.”

NC1

To move the following Clause—
“Review of impact on SME recruitment and retention
(1) The Treasury must, within 12 months of the passing of this Act, lay before Parliament a report assessing the effect of its provisions on small and medium-sized businesses with regard to the—
(a) recruitment of staff, and
(b) retention of staff.
(2) The report under subsection (1) must also consider the cumulative impact of changes to employer’s national insurance on businesses affected by this Act since July 2024.”

This new clause would require the Treasury to review and report on the impact of the Bill’s provisions relating to National Insurance contributions on the ability of SMEs to recruit and retain staff.

NC2

To move the following Clause—
“Review of impact on small and medium-sized business tax liabilities
(1) The Treasury must, within 12 months of the passing of this Act, lay before Parliament a report assessing the effect of its provisions on small and medium-sized businesses with regard to—
(a) businesses’ overall tax burden,
(b) employment costs, and
(c) business solvency.
(2) The report under subsection (1) must also consider the cumulative impact of changes to employer’s national insurance on businesses affected by this Act since July 2024.”

This new clause would require the Treasury to review and report on the impact of the Bill’s provisions relating to National Insurance contributions on the overall tax burden and employment costs faced by SMEs.

NC3

To move the following Clause—
“Review of impact on employee marginal tax rates
(1) The Treasury must, within 12 months of the passing of this Act, lay before Parliament a report assessing the effect of its provisions on the number of employees brought into a higher marginal rate of income tax.
(2) The report under subsection (1) must give particular regard to the impact of the freezing of income tax thresholds between April 2022 and April 2031.”

This new clause would require the Treasury to review and report on the impact of the Bill’s provisions relating to National Insurance contributions on the number of employees who move into a higher tax band due the increase in their taxable income due to the effects of this Bill.